What Happens if You Don’t Have a Building Information Certificate in Sydney?

Cameron Rowe
Apr 9
3 min read

What Happens if You Don’t Have a Building Information Certificate in Sydney?

If you own a property in Sydney or are planning to buy or sell one, you may have heard of a Building Information Certificate (BIC). But what if you don’t get one? What’s the worst that could happen?

The short answer: you could face legal issues, fines, forced demolition, and even delays in property transactions.

Let’s take a look at what happens if you don’t have a BIC—and why it's often one of the smartest decisions a property owner can make.

What Is a Building Information Certificate?

A Building Information Certificate is a formal document issued by your local council (such as City of Sydney, Inner West Council, or Parramatta City Council) confirming that no enforcement action will be taken against an existing structure for a period of 7 years.

It's especially useful when:

You’ve made building changes without prior approval
You’re buying or selling a property with unapproved works
You want peace of mind that the council won’t demand demolition or rectification
You can also read about BICs on the official NSW Planning Portal.

Risks of Not Having a Building Information Certificate in Sydney

1. Council Orders to Demolish or Rectify

If you've built or inherited a structure that doesn’t comply with council approvals, the local authority can issue:

Demolition orders
Stop-work notices
Rectification orders

Without a BIC, you have no protection against these actions—even years after the work was completed.

2. Delays or Failures in Property Sales

When selling a home, buyers (and their conveyancers) often investigate whether all structures are approved. If they discover unapproved works, they may:

Pull out of the sale
Request a price reduction
Delay settlement until a BIC is obtained

This is especially common with additions like carports, granny flats, pergolas, or garage conversions.

3. Difficulties with Insurance Claims

Some insurance companies may refuse to pay out on claims involving unapproved structures, especially if the building work contributed to the damage. Without a BIC, your coverage may be voided for certain claims.

4. Penalties for Non-Compliance

Local councils in the Sydney region may impose hefty fines for unauthorised works—particularly if safety or fire compliance is an issue. Having a BIC can prevent these penalties and demonstrate a proactive approach.

Real-World Example

Let’s say you purchased a home in Marrickville (Inner West Council) with a rear extension. You later discover it was never approved. The council issues a notice requiring plans, certification, and possibly demolition.

If you'd obtained a Building Information Certificate, the structure would have been protected for 7 years—even if the original works were unapproved. Instead, you're now facing unexpected costs and stress.

When Is a BIC Most Useful?