As long as you have neighbors, you'll have to be nice, like in Goofballs rather extreme example.

Any structure built in violation of building permits should be wrecked instantly, and the builder should be slapped. A fine won't do, that would allow people to do like this idiot and then simply pay their way out of trouble. No, the only way to combat this is to wreck the offenders on sight.

CR noted an interesting thing; that this regulation reduces property value. Well, the same would apply without them, except that you would be left at the whims of neighbors you cannot influence instead of a democratically controlled city council(or whatever elected government body is in control). You bought a house and paid an extra 100k because it has easy access to a beach? Nope, sorry, your neighbor decided to build a boathouse there and shut you out, might as well have burned that extra 100k.

I definitely know which system I prefer.