137B Owner Builder Report

We provide 137b Owner Builder Defects report in Melbourne with a quick 24 hours turnaround. Our reports comply with your insurance and conveyancing requirements and will enable you to obtain an owner builder warranty insurance. To get an obligation free quote or to speak with one of our inspectors, get in touch today.

What is it Section 137 B Report?

The Building Act 1993 Section 137B refers to building works that have been carried out by an Owner Builder and the owner then wants to sell the home within 6.6 years of the works being completed.

Under the Act, an owner builder who carries out building works on their property and then decides to sell the property within 6 years and 6 months of the works being completed must obtain a 137B Defects Inspection Report. (Commonly known as Section 137B Report)


Who is an Owner Builder?

An owner builder is defined as someone who “constructs or renovates a domestic building on his or her own land, and who is not in the business of building”. Genuine owner builders do not intend to sell or rent the property immediately and must reside or intend to reside in the dwelling upon completion of the works. The Owner Builder must also be the owner of the property or the title holder.


When is a 137 B Inspection Required?

A Section 137 B Inspection Report is required only if you sell the home within 6 years and 6 months of the works being completed. If you sell the home after 6 years and 6 months of the building works being completed, you don’t require one. The value of the works does not matter. The value of the works only matters in relation to warranty insurance. If the value of the works is over $16,000, the owner builder must get warranty insurance.


What is included in the Section 137B Inspection report?

This report is a description of the building works the owner builder had built.It could be any building work not limited to but including, carports, decks, garages, extension or entire homes.The report describes any defects including incomplete works, deterioration, footings issues, framing issues, roof defects etc.


Where is the Section 137B Report Being Used?

The Section 137B inspection report gets attached to the Section 32 Contract of Sale for potential buyers to see.
Also if an owner has carried out works on their home that required a building permit, most banking institutes now require Section 137B defects reports before they will lend money to a potential purchaser.

What if Defects are noted in a Section 137B report by the Building Inspector?
The 137B defects inspection report places no obligation on the owner builder selling the home within 6.5 years to rectify the defects. It just makes the potential buyer aware of the defects.


Legally Who Can Carry Out House Inspections for Section 137 B Reports?

Only Registered Building Inspectors or Surveyors, Builders, Architects, Structural Engineers and Drafts persons engaged in the Building Industry.

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