Is it possible to live in a house that has not been approved?

Quick overview:

• Using a building without approval is usually a violation of the Building Code.
• There is a fine for using an unapproved building.
• The building authority may prohibit the use.
• A mortgage on an unapproved house can be problematic.
• The solution is to apply for an approval decision.

Not sure if you can legally use the house? Contact us and we will check whether you are at risk of a fine and how to resolve the situation quickly.

What does it mean to live in an unlicensed house according to the law

According to the Building Act, a building is a work of construction resulting from construction activity. A family house is a building for housing in which more than half of the floor area is used for living purposes and which meets the legal parameters.

However, this alone is not enough. The building must not only be physically completed but also fit for use in accordance with the permit. The new Building Act is based on the principle that the use of a building is only possible after the project has been duly permitted and completed in accordance with the decision of the building authority.

Therefore, if someone lives in a house that has not been approved or the legal condition for use has not been fulfilled, it is the use of a building without approval. Typically, this refers to situations where:

• the builder completes the house “by eye” and moves in immediately,
• the approval decision is missing,
• the house has been approved as a holiday home but is actually used for permanent housing,
• the conditions set out in the building permit have not been met.

At the same time, the law also explicitly deals with the change of use of the building. For example, if you change a holiday home into a permanent dwelling without following the necessary procedure, this is also a violation.

What is the penalty for using a building without approval

A fine for using an unapproved building is not a theoretical threat. Building authorities have the power to control the use of buildings and to initiate offence proceedings.

Typical consequences:

• initiation of misdemeanour proceedings,
• fine for use of an unauthorised building,
• a request for immediate remedial action,
• prohibition of the use of the building,
• in extreme cases, proceedings for the removal of the building (for serious infringements).

The amount of the fine depends on the specific circumstances – in particular whether the person concerned is a natural person or an entrepreneur, the extent of the infringement and any repetition.

There is also the problem that the use of a building without approval may have an impact on other legal relations – for example, liability for damage, insurance or liability towards neighbours.

One case for all

A client of ours (a young family) completed the construction of a house and moved in before the approval was granted. The building company assured him that “the approval was just an administrative formality” and that everything could be sorted out afterwards.

However, shortly after the move-in, the building authority carried out a local investigation following a complaint from a neighbour. The authority found that the house was in fact being used for living purposes, although no building approval had been issued and no early use of the building had been permitted. The client was served with a notice of initiation of offence proceedings for use of the building without approval, ordered to refrain from using the building until the statutory conditions were met, and fines proceedings were initiated.

The situation was further complicated by the bank. The client had taken out the mortgage in stages according to the completed construction phases. After being informed of the proceedings, the bank suspended the last part of the loan until the approval of the building permit was obtained. This left the family without part of the funds they needed to complete the interior.

How we helped our client

After taking the case, we first checked the construction documentation and found that:

• the house had been constructed with minor deviations from the design documentation,
• not all inspection reports were documented,
• no application for approval had been submitted.

We therefore proposed a two-pronged strategy:

1. Minimizing the sanction – in the offence proceedings we emphasized that the client had actively initiated remedial steps, that the building complied with the technical requirements and that there was no threat to public interests.
2. Rapid legalisation of the use of the building – we ensured that the documentation was completed, coordinated with the designer and that a proper application for approval was submitted.

At the same time, we communicated with the bank and provided them with a schedule for the legalisation of the building. As a result, the bank renewed the loan subject to the submission of the approval within the stipulated timeframe.

As a result, the client received a fine at the lower end of the rate (significantly lower than originally threatened), the building authority issued the approval after completing the documents, and the family was able to legally occupy the house and draw down the mortgage.

If you are also dealing with a problem related to construction and approval, do not hesitate to contact us. Our team of experts is ready to help you in any legal matter.

Early use of the building as a legal option

Premature use of a building is a legal institution that allows the building to be used before its completion. However, it is not an automatic authorisation. Without the express consent of the building authority, the use of a building is still considered unauthorised use, i.e. use without meeting the legal conditions.

The institute of early use is particularly relevant in a situation where the building is practically completed but some finishing works remain which do not have a significant impact on the safety or health of persons. Typically, this may be, for example, unfinished landscaping, facade or minor construction details, while the residential parts of the house are already fully functional.

The basic assumption is that the building is technically fit for safe use. This means that all the essential structural and technical parts must be completed, in particular the electrical installation with inspection report, water and sewerage connection, heating, ensuring the statics of the building and safe access. At the same time, the building must conform to the permit issued, and any deviations must be legally addressed.

If the builder wants to use the early occupation institute, he must submit an application to the building authority. The application should identify the building precisely, describe the current state of work in progress, indicate which parts are not yet complete and justify why the building is already fit for safe use. In particular, the documents should include inspection reports, or a statement from the designer or construction manager confirming that the use will not pose a risk to persons or public interests. In practice, it is also appropriate to include a schedule for completion of the remaining works.

However, the mere submission of an application does not entitle the builder to use the building. Occupation is only possible after the building authority has expressly authorised early occupation. At the same time, the authority may impose specific conditions, such as the deadline by which the building must be fully completed and the date by which an application for a proper occupancy permit must be submitted. These conditions must be strictly observed.

If the builder starts to use the building without the issued consent, he runs the risk of misdemeanour proceedings and possible fines for using the building in violation of the law. The building authority may also order the temporary cessation of the use of the building. Problems may also arise in relation to the financing bank or insurance company, which may require proof of the legal use of the building.

The institution of early occupation is therefore a legitimate and practical tool if used correctly. However, it requires active communication with the building authority, proper preparation of documentation and respect for the conditions set out.

Not sure if your house is legally fit for use? In a one-off legal consultation, we’ll quickly tell you where you stand – and how you can minimise the risks.

Summary

Living in an unlicensed house is usually in breach of the Building Act because the building can only be used once the legal conditions and permission for use have been met; the physical completion of the house alone is not enough. If you move into the house without approval or without permission to use the building before the construction is completed, you risk being subject to misdemeanour proceedings, fines, prohibition of use of the building and, in extreme cases, other sanctions. Using the building for a purpose other than that for which it was authorised, for example if the holiday home is actually used for permanent housing, is also a risk. The legal way to deal with the situation is to apply for approval or to use the institute of early use of the building, which requires the approval of the building authority, the technical suitability of the house for safe use and the fulfilment of specified conditions; without explicit permission, the house cannot be moved into.