Melbourne’s Provider of Trusted 137B Owner Builder Reports In 24 Hours
We provide 137b owner builder defects reports in Melbourne with a quick 24 hour turnaround once the onsite inspection has taken place. Our reports comply with your insurance and conveyancing requirements and will enable you to obtain an owner builder warranty insurance policy. To get an obligation free quote or to speak with one of our inspectors, get in touch today.
Section 137B reports and why Melbourne owner builders need them
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 a section 137B report).
Who is an owner builder and when is a 137B defect report needed?
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.
Subsection 137B(2) of the Act provides that domestic owner builder obligations arise if a contract to sell is entered into within the prescribed period, which is defined in subsection 137B(7) of the Act as being:
- 6 years and 6 months after the date of completion of the works, where the date of completion of the works, is the date that an occupancy permit has been issued or a certificate of final inspection has been issued;
- 7 years after the date of commencement of the works, which is the date of the issue of the building permit, if neither an occupancy permit nor a certificate of final inspection has been issued; or
- 6 years and 6 months after the certified date of commencement of the works, which is the date that you declare in a statutory declaration to be when the works commenced.
What the section 137B owner builder defect report includes
An owner builders defect report must disclose all the building works the owner builder had completed. It could be any building work not limited to but including, carports, decks, garages, internal renovations, extension or entire homes, including materials used. The report must also disclose any defects, and note incomplete works.
Where is the section 137B report being used?
The section 137B inspection report gets attached to the section 32 contract of sale to legally disclose any owner builders works to potential buyers.
If the value of the building work is more than $16,000, then home owners warranty building insurance must be obtained by the owner builder and a certificate of currency given to the buyer pre-contract. The insurance must cover structural defects for 6.6 or 7 years and non-structural defects for 2 years.
Legally who can carry out house inspections for section 137 B reports?
Only registered building inspectors or surveyors, builders, architects and structural engineers engaged in the building industry.
If you need a reliable 137B owner builder report fast – call us today!
Solid Start Property Inspections services the whole of Melbourne.
FAQ
A 137B report typically takes less than 1 hour on site and bookings can be organised from 1 to 3 business days in advance, depending on previous bookings and access/availability to the property. If access is available and we have an opening, the 137B report, inspection, and supply of the report can be done within 24 hours of agreement to proceed.
The Section 137B Owner Builder Report in Victoria is a mandatory document required for Vendors who have completed any owner builder work as per Section 137b of the Building Act.
Owner builders in Victoria who have completed building works and wish to sell their property are required to provide a Section 137B Owner Builder Report. This report is necessary to disclose any building works completed by the owner to potential buyers.
The purpose of a Section 137B Owner Builder Report is to ensure that any building works carried out by an owner builder comply with building regulations and standards. It provides transparency to potential buyers and discloses any defects or incomplete works noted.
The cost of a 137B report can vary based on the specifics of the property and the scope of the inspection. Our fee for a 137B report starts at $390 inc GST. It’s best to contact Solid Start Property Inspections directly for an accurate quote.
A Section 137B Owner Builder Report includes details of the building works completed, materials used, whether there are second-hand materials used, and notes any defects and/or incomplete works.
Failing to obtain a Section 137B Owner Builder Report and disclosing all owner builder works completed may result in legal and financial consequences. It may affect the sale of the property, as not disclosing owner builder works completed may make the vendor (seller) in breach of contract and then may void the contract and allow the purchaser to pull out of the sale. Always ensure you have the necessary documentation to comply with regulations, including a copy of any building permits issued and any occupancy permits or certificates of final inspection issued (as applicable). These must be attached to the 137B report.
The Section 137B Owner Builder Report should be submitted when an owner builder decides to sell their property. It is a crucial part of the documentation required for the sale process to ensure compliance and transparency.
The Section 137B Owner Builder Report benefits future owners by declaring the owner builder works completed by the vendor, prior to sale and, if necessary, is used to purchase Owner builder warranty insurance, if required.
The value of the building work is determined based on the cost of materials, labour, and any other expenses related to the building works carried out by the owner builder.
It is an offence for an owner-builder to sell building without reporting or insurance ( if required)
Building Act 1993 -SECT 137B
Exceptions to the requirement for a Section 137B Owner Builder Report may exist in specific cases, such as minor works that do not significantly alter the property or when the building works are exempt under the Building Act 1993. It is advisable to consult with the VBA or a professional to determine if an exemption applies.
No, the Section 137B Owner Builder Report must be prepared by a VBA registered building inspector or above. This ensures the report is legal.
To ensure your building work complies with the regulations for a Section 137B Owner Builder Report, engage a qualified professional for the construction process, adhere to the building codes and standards, and obtain the necessary permits and inspections. Regularly consulting with a registered building practitioner can help maintain compliance throughout the building process.
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