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Unauthorised extension in a judicial auction valuation: identify the risk before bidding

Unauthorised extension in a judicial auction valuation: review the building file, actual condition, use, possible costs and bidder risk before bidding.

BRANDAUER Rechtsanwälte
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BRANDAUER Rechtsanwälte

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We review the court file and property documents, explain the likely legal and financial consequences, and agree the next step with you.

26 August 2026, Mag. Bernhard Brandauer, Rechtsanwalt

An unauthorised extension can materially affect a bid decision in a judicial auction. It is not enough that a room or building part appears in the valuation report. A bidder must establish what is actually built, which approvals exist and what the difference may mean for use, cost and value.

The valuation report is not a building-law review. Before bidding, place the report, the building file, the land register, the auction edict and your own inspection notes in one dated working file.

First classification

Which document should resolve your main extension risk?

Select the issue that remains open before bidding. The result points to the relevant document and next review step.

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01 Question 1

Where is the main open question?

All paths at a glance

Overview of all outcomes.

01

Organise the building file and approval status

Arrange building permits, plans, completion notices and authority correspondence by date and building part. If the file is incomplete, make a specific request to the competent building authority.

Organise the auction file →
02

Compare the as-built condition with the plans

Record each differing room, area and use. Place current photographs, plans and the valuation report side by side instead of comparing only the stated value.

Classify buyer risks before bidding →
03

Separate use and cost questions

Keep possible remediation, demolition or subsequent-approval costs separate from your personal bid limit. A valuation figure does not answer these questions.

Plan a bid budget with reserve →

What an unauthorised extension means

The wording in the valuation report is a review signal. Whether a building part required approval, whether an approval exists and whether the as-built condition is covered depends on the applicable provincial building law and the specific building file. The absence of an attached document does not by itself prove that the structure is unlawful.

Conversely, a building part described in the report must not be treated as approved without checking the authority file. For each affected part, ask for the approval, plan status, completion record and later amendments.

Compare the valuation report, building file and property

Section 141 EO provides that the valuation is carried out under the Real Estate Valuation Act unless the EO provides otherwise. The relevant date is the day of the inspection. For buildings, the expert should also include a floor plan and at least one image. Compare the inspection date, plans and images with the present condition.

Create a table with the room or building part, stated area, actual use, plan status, approval evidence and open question. The article on the court valuation report explains the review of findings, date and attachments.

Document comparison

Which document answers which extension question?

No single document proves the building-law and economic classification on its own.

Review fields for an unauthorised extension
Review field What to check Follow-up question
Valuation report Description, areas, use, images and inspection date Which assumption supports the value?
Building file Permits, plans, completion and authority letters Does the built condition match the file?
Inspection Actual condition, access, damage and use Which difference is recorded and provable?
Land register and edict Property, rights, encumbrances and supplied documents Which information applies to this proceeding?

Consequences for use and bid limit

An unresolved extension can make use, financing and later resale more difficult. Depending on the findings, the review may include building adjustments, subsequent approval, a change of use or demolition. Which option is legally and technically available can only be assessed from the file, the actual building and the competent authority.

Do not treat these uncertainties as solved and fold them into the valuation figure. Keep the stated value, known costs, possible additional costs and your personal bid limit separate. The bid budget planner helps structure the calculation but does not replace a building-law review.

Do not overestimate warranty after the award

Bidders must account for the special risk of a judicial auction. Section 189(2) EO excludes a warranty claim based on incorrect statements in the auction edict or in the files supplied before the auction concerning the property or its accessories.

That does not make every open question irrelevant. It means that the available documents must be assessed before bidding and that uncertainty must not be treated as an assured property. The guide to the bidder risk and the review of the auction edict form part of the preparation.

Process before bidding

From the report warning to a decision in five steps

Work through the warning in the report using specific documents.

  1. 01
    1

    Name the building part

    Record room, area, use and position in the property.

  2. 02
    2

    Secure the report

    Mark the inspection date, images, plan and valuation assumptions.

  3. 03
    3

    Compare the building file

    Match permits, plans and later authority correspondence.

  4. 04
    4

    Assess the consequences

    Separate use, financing, remediation and possible next steps.

  5. 05
    5

    Set the bid limit

    Keep uncertainties and reserves outside the valuation figure.

Important: An extension mentioned in a valuation report is neither automatically approved nor automatically unlawful. The decisive points are the building file, the as-built condition, applicable provincial law and the concrete economic effect.
FAQ

Questions about an unauthorised extension

Is an extension mentioned in the report automatically approved? +
No. The reference first describes the findings or valuation basis. Approval, plan status and the as-built condition must be checked against the competent building file.
Can I simply deduct the extension cost from the valuation? +
Not automatically. The valuation is based on a specific inspection and method. Possible costs and restrictions must be assessed separately and on a sound basis.
Can I claim a warranty after the award? +
Section 189(2) EO excludes a warranty claim for incorrect statements in the edict or supplied files concerning the property or its accessories. The bidder risk must therefore be assessed before bidding.
Which documents should I request before bidding? +
Secure the valuation report, building file, permits, plans, completion records, auction edict, land register and dated inspection notes. The concrete access depends on the authority and proceeding.
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Topics
Judicial auctionValuation reportBuilding fileBuilding approvalExtensionBidder riskPropertyEO

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