Section 137B owner-builder defects report
If you built or renovated your Victorian home under an owner-builder permit and you are selling within the prescribed period, the law requires you to obtain a defects report and give it to your purchaser. We inspect the work and issue the report.
What the law requires of owner-builders
Section 137B of the Building Act 1993 (Vic) applies to owner-builders who sell a building they constructed. The obligation sits with the seller, and it must be met before the contract of sale is signed rather than after.
It is a legal requirement
Under section 137B of the Building Act 1993 (Vic), an owner-builder must not enter into a contract to sell the building within the prescribed period after the work is completed unless a report on the building has been obtained from a prescribed building practitioner and a copy has been given to the intending purchaser. Domestic building insurance and the implied warranties in section 137C may also apply.
Timing matters
The report must have been obtained no more than six months before you enter into the contract of sale. If your campaign runs long, or the property does not sell, the report may need to be re-issued so it is still current at the time of signing.
What the report contains
The report sets out the matters required by the Minister's notice published in the Government Gazette. In practice it identifies the building work carried out and lists any defects apparent on inspection, so the purchaser understands the condition of the owner-builder work before they sign.
This page is general information about the reporting requirement, not legal advice. Your conveyancer or lawyer can confirm how section 137B applies to your particular sale, including insurance and warranty obligations.
What we provide
- Site inspection of the owner-builder work by a suitably qualified practitioner
- Identification of the building work covered by the report
- A list of any defects apparent at the time of inspection
- The report in the form required for a section 137B disclosure
- A copy suitable for providing to your intending purchaser and conveyancer
- A follow-up call to talk through the findings before you list
Qualified to issue the report
Konstrukteur is led by a qualified structural engineer and registered building practitioner, which means we hold the licensing and qualifications required to inspect owner-builder work and issue a Section 137B defects report in Victoria.
Inspections are booked directly with the practitioner who writes the report, and the report is usually issued within 24 hours of the inspection.
Section 137B report questions
- Who can issue a Section 137B report?
- The Building Act requires the report to come from a prescribed building practitioner. Konstrukteur is led by a qualified structural engineer and registered building practitioner, so we hold the qualifications and registration needed to inspect owner-builder work and issue the report.
- Do I need one if I only did part of the work myself?
- If you took out an owner-builder permit for the work, the obligation generally applies when you sell within the prescribed period, even where individual trades carried out parts of the job. If you are unsure, speak with your conveyancer or lawyer and we will inspect on that basis.
- What happens if I sell without the report?
- Selling without complying with section 137B is an offence carrying penalty units, and the contract is voidable at the purchaser's option at any time before completion. It is far cheaper to obtain the report before the property is listed.
- Is this the same as a pre-purchase inspection?
- No. A pre-purchase inspection is a general condition report for a buyer. A Section 137B report is a statutory disclosure document about owner-builder work that must be given to the purchaser before the contract is signed.
- How long does it take?
- We inspect at a time that suits you and issue the written report within 24 hours of the inspection in most cases.
Preparing to sell? A pre-sale assessment can be carried out at the same visit, and our building inspection services cover buyers, investors and new builds.