Selling property in Victoria as an owner-builder?
Section 137B of the Building Act relates to Owner Builders. A s.137B report, often referred to as an ‘Owner Builder Report’ is a legal requirement which documents visible defects with the building work that an Owner Builder has carried out.
Owner Builders need to engage a prescribed building practitioner (i.e. a registered building inspector, building surveyor, accredited architect or an endorsed building engineer) to provide a defects inspection report if selling a property within 6.5 years of completing building work. The report must be less than six months old when the property is sold.
Often requested by conveyancers or real estate agents, these reports are a statutory requirement and incorporated into the section 32 (contract of sale) providing insight for purchasers. For vendors, they provide a layer of legal protection, fulfilling their duty to disclose relevant information about construction works that have been completed on or to the property.
What is construction work?
Under s.137B (7) of the Building Act “construct” in relation to building means;
(a) build, rebuild, erect or re-erect the building; or
(b) make alterations to the building; or
(c) enlarge or extend the building; or
(d) cause any other person to do anything referred to in paragraph (a), (b) or (c) in relation to the building; or
(e) manage or arrange the doing of anything referred to in paragraph (a), (b) or (c) in relation to the building.
When is a s.137B Owner Builder report required?
The Section 137B report is mandated by The Building Act 1993 for owner builders, who have completed building or renovation works on their property (regardless of value) and wish to sell the property within 6.5 years (6 years and 6 months) of completing construction work.
The building work may include but is not limited to the construction of a carport, garage, shed, deck, pergola, alfresco area, retaining wall, home alterations, renovations and extensions.
The report needs to be completed within six months before the vendor enters into the contract of sale.
s.137B reports are not required if the Owner Builder is a registered building practitioner.
What is an Owner Builder?
An Owner Builder is defined as someone who constructs or renovates a domestic building on their own land, and who is not in the business of building.
An owner may choose to manage construction projects on their property directly, without utilising a registered builder. They may oversee the construction process, from selecting tradespeople to sourcing materials and ensuring compliance with designs and specifications. An Owner Builder may complete work on their home in order to save costs and have more control over the project.
A homeowner who has completed building works without knowing that a building permit was required may also be considered an owner builder. It is usually when the homeowner is ready to sell the property that they may discover this.
Who can legally complete a s.137B Owner Builder report?
The building work needs to be inspected and reported on by a “prescribed building practitioner”. Under s.137B(7) of the Building Act a “prescribed practitioner” is;
(a) an architect registered under the Architects Act 1991; or
(b) a building surveyor, building inspector or an engineer registered under Part 11; or|
(c) a person recognised by the Minister under section 28 of the House Contracts Guarantee Act 1987 by order in force immediately before the commencement of section 166 of the Domestic Building Contracts Act 1995.
Registered Builders (DB-U and DB-L) are NOT authorised to complete these inspections and reports under The Building Act 1993.
Our points of difference
An Owner Builder Defects Report by Manse Group is more than simply ticking a box within the selling process; it’s a valuable requirement for risk mitigation and transparency for future buyers and their investment.
Our suitably qualified Registered Building Inspector completes a thorough building inspection and a comprehensive s.137B Report on defects in materials, workmanship and incomplete works.
- All inspections and 137B Reports completed by a Registered Building Inspector
- We can attend the property and issue the report in a timely manner
- We are proudly owned and operated in Geelong, servicing the surrounding areas
Looking to sell your property and need a 137B Owner Builder Report in the Geelong and surrounding area? Our friendly team would be pleased to discuss your needs, get in touch.
