What Happens If a Building Isn't as Described in the Contract

A contract of sale describes more than a price and a settlement date. It usually incorporates plans, a zoning certificate, and statements about the property's floor area, number of rooms, boundaries and approved structures. When the physical building turns out to be materially different from that description, buyers understandably want to know whether they can walk away, renegotiate, or claim compensation. The answer depends on how significant the discrepancy is and when it is discovered.

What "Not as Described" Actually Means

Not every minor inconsistency gives rise to a remedy. A discrepancy needs to be material, meaning it would genuinely affect a reasonable buyer's decision to proceed or the price they were willing to pay, before it becomes legally significant. A slightly different paint colour or a garden bed that has been reshaped since photos were taken is not the same as a bedroom that does not actually exist, a floor area that is substantially smaller than advertised, or a structure built without the required approval. Conveyancers assess materiality carefully, because it shapes every option available afterwards.

Common Examples in Practice

The most frequent version of this issue involves unapproved renovations, such as an enclosed patio, a converted garage, or an additional bedroom built without council approval, that was nonetheless included in the marketing and the contract's description of the property. Other examples include a granny flat or secondary dwelling that was never properly certified, a boundary that does not match the plan of subdivision, or a building that occupies more of the block than council records permit. Some of these issues surface during a building and pest inspection, while others only come to light once a buyer's conveyancer runs council and title searches.

Building and Pest Inspections as a Safeguard

A pre-purchase building and pest inspection is one of the most practical tools available for catching a mismatch between the contract description and reality before you are committed. A qualified inspector will typically note unapproved structures, signs of unpermitted alterations, and general condition issues that photographs and floor plans can easily disguise. Buyers who skip this step to save time or money, particularly at auction where finance and inspection conditions are usually not available, take on considerably more risk that any discrepancy will only surface after they already own the property. Pairing a physical inspection with your conveyancer's title and council searches gives a much fuller picture than either check on its own.

Where Misrepresentation Fits Legally

Beyond the contract itself, Australian Consumer Law prohibits false or misleading representations about land, including its physical characteristics and any approvals attached to it. NSW Fair Trading's guidance on false or misleading representations gives a useful sense of how broadly this can apply, covering inaccurate descriptions of a property's nature, characteristics or permitted use. This sits alongside, rather than instead of, any specific remedies in the contract itself.

If You Discover It Before Settlement

Discovering a discrepancy before settlement is the better scenario for a buyer, because more options remain open. Depending on the contract terms and the state you are buying in, options can include requesting the seller rectify the issue where practical, negotiating a price adjustment to reflect the true condition of the property, or in serious cases, rescinding the contract and recovering the deposit. Buyers working through a residential purchase should raise any concerns with their conveyancer immediately once they notice something is off, rather than waiting to see if it resolves itself, since some of these rights are time limited and can be lost if not exercised promptly.

If You Discover It After Settlement

Once settlement has occurred, options narrow considerably but do not disappear entirely. A buyer may still have a claim in misrepresentation or breach of contract, though pursuing this typically means engaging a solicitor and can involve real cost and time before any outcome is reached. This is a good example of why pre-settlement due diligence, including a proper title, council and planning search, matters so much: it is far easier and cheaper to catch a problem before you own the property than to chase a remedy afterwards.

Seller's Perspective and Disclosure Obligations

Sellers are not expected to guarantee perfection, but most states impose some form of disclosure obligation around known building defects, unapproved works or non-compliant structures. A seller who knowingly allows an inaccurate description to stand in the contract, particularly around approvals, is taking on real risk of a later claim. Getting a residential sale contract drafted properly, with accurate attachments and clear special conditions where uncertainty exists, is one of the more effective ways sellers protect themselves from this kind of dispute later. Where a seller is aware of unapproved work but not in a position to rectify it before listing, disclosing the issue upfront and adjusting the price accordingly is usually a far safer path than hoping it goes unnoticed, since a buyer who later discovers it has considerably stronger grounds for a claim than one who was told from the outset.

How a Conveyancer Helps

A conveyancer's role here is largely preventative. On the buying side, that means running thorough searches, reading the contract's description against what you have actually inspected, and flagging anything that does not line up before you are locked in. On the selling side, it means making sure the contract and its attachments accurately reflect the property, including any unapproved work, rather than leaving gaps that could later be characterised as misleading. If a dispute does arise, whether you are buying in Victoria or Queensland, your conveyancer can advise on your immediate options and bring in a solicitor for anything that moves beyond standard contractual remedies. Because claims of this kind can touch on consumer law as well as property law, it is worth treating this as an area for specific legal advice rather than general guidance alone.