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Who is an owner builder?
The person named on the building permit as both the property owner and the builder is legally considered an owner builder. If you are selling an owner-built property, a 137B report is a legal requirement in Victoria.
The Section 137B Report, also known as the 137B Owner Builder Report, can only be completed by registered engineers, architects, surveyors, and inspectors.
Just Inspection Building Inspectors that complete 137B Owner Builder Reports are registered engineers, and complete all inspections and reports to the Australian standard AS 4349.1.
why is the owner builder inspection report required?
Owner builder property inspection reports are required by law in the state of Victoria. There are also conditions where warranty insurance may be required in addition to the section 137B owner builder report.
Victorian Legislation
Prior to selling owner built constructions, section 137B of the Victoria Building Act 1993 requires the building work to be inspected and reported on by a licenced building practitioner. The Report forms part of the Section 32 transfer documentation at time of sale.
The legislation applies to owner builders, for:
Work WITH a permit completed within the last six years and six months
Owner builder reports are required for works including the below, regardless of the size or cost of the project:
Warranty Insurance
Under the 137B Building Act, if the trade value of the work exceeds $16,000, both a defects report and warranty insurance are required.
What is inspected in an owner builder report?
Unlike a standard council mandatory inspection, a specialist 137B Owner Builder Defects Report details non-structural and cosmetic building elements, including workmanship quality. The 137b report cost depends on the scope of the inspection and the property’s condition
The owner builder defects report highlights faults and defects in the building work and if second hand building materials have been used. We often find defects that were overlooked at previous mandatory inspections.
Our Melbourne Building Inspector will assess all accessible areas of your property including:
- Decks
- Carports / garages
- Extensions
- Kitchen renovations
- Bathroom renovations
- Full house renovations
- Driveways
- Tiling
- Fences
- Sheds
- Retaining walls
Some common building defects identified include:
- Ground level under house lower than external paving or landscaping
- Insufficient freeboard to floor slab (AS 2870)
- Insufficient clearance under windows (BCA 3.3)
- Incorrect, missing or unsealed vertical articulation joints. (BCA 3.3.1.8.)
- No safety glass
- Scoring of metal valley flashings
- Non-compliance of stairs
- Sticky windows and doors
Benefits of a Section 137B Inspection Report
- At Justin Inspections, we know how important it is for owner-builders to have peace of mind knowing their property meets all legal requirements.
- Our Section 137B inspection reports are designed to ensure your home complies with Australian building standards and regulations. This gives you confidence that your work is up to code and helps protect you from potential legal issues down the track.
- For prospective buyers, having a Section 137B report offers transparency and reassurance, which can increase your property’s value.
Whether you’re asking when a 137B report is required or simply want to make the selling process smoother, our experienced team is here to guide you through it. With our thorough inspection, you can be sure your property is in the best shape to move forward.
When is a 137B Owner Builder Report Required?
A 137B Owner Builder Report is required under The Building Act 1993 for owner-builders who have completed construction or renovation work on their property and plan to sell within 6.5 years (6 years and 6 months) of completing the work.
Regardless of the value of the building or renovation, this report ensures that all work complies with Australian building standards.
If you’re an owner-builder looking to sell your property within this time frame, obtaining a Section 137B report is essential to ensure legal compliance and avoid potential issues during the sale process.
How Just Inspections Can Help?
At Justin Inspections, we specialise in providing expert Section 137B Owner Builder Reports that help ensure your property complies with all Australian building standards and regulations.
As an owner-builder, navigating the legal requirements for selling your property can be complex, but we make the process simple and straightforward. Here’s how we assist you:
Comprehensive Inspections
Our qualified inspectors conduct a detailed assessment of your property to identify any potential issues or non-compliant building work. We ensure that all construction or renovation work meets the necessary building codes and regulations, helping you avoid costly legal disputes.
Expert Guidance
Not sure when a 137B Owner Builder Report is required? Our team is here to provide clear, expert advice tailored to your situation. We guide you through every step of the inspection process, from initial questions to the final report, making sure you understand your options.
Accurate and Transparent Reporting
Once the inspection is complete, we provide you with a thorough, easy-to-understand report that highlights any concerns and confirms that your property complies with all relevant regulations. This report is crucial for ensuring a smooth property sale and increasing its value.
Peace of Mind for Buyers
A Section 137B report not only protects you as the owner-builder but also reassures potential buyers, demonstrating that the property has been built to code. This added transparency can increase buyer confidence and improve the chances of a quick sale.
Compliance Guaranteed
If you’re planning to sell your property within 6.5 years of completing building work, obtaining a Section 137B inspection is a legal requirement. We help ensure that your property meets all the requirements so you can confidently sell, knowing that you’re fully compliant.
Owner Builder Inspection Frequently Asked Questions
How do I get Advice as an Owner Builder?
Most conveyancers and lawyers are aware of this complex legislation. However basic information is available from the Just Inspections office together with assistance in obtaining warranty insurance, if required.
How long will it take to get an owner builder inspection report?
Just Inspections typically deliver owner builder defects reports within two to three days from booking the inspection.
We are usually able to complete the inspection at the property within 48 hours, then deliver the report one business day after the inspection.
Why is this inspection legally required?
Under Section 137B Building Act, any owner builder selling their property must provide a defects report as part of the sale documentation.
What is the Section 137B Owner Builder Report in Victoria?
A Section 137B Owner Builder Report is a mandatory inspection for properties being sold within 6.5 years of construction, ensuring compliance with building regulations and identifying any defects.
What is the Purpose of a Section 137B Owner Builder Report?
The Section 137B Owner Builder Report ensures that the property complies with Victorian building standards and regulations, providing transparency and safety for both sellers and buyers.
What Happens if I Don't Submit a Section 137B Owner Builder Report?
Failure to submit a Section 137B report can result in fines, required remedial work, or legal complications when selling your property within 6.5 years of construction.
When Should I Submit a Section 137B Owner Builder Report?
You must submit a Section 137B Owner Builder Report after completing building work valued over $16,000 and if selling within 6.5 years of completion.
Can I Prepare the Section 137B Owner Builder Report Myself?
It’s recommended to hire a licensed building practitioner to prepare your Section 137B report, as it requires expertise in building codes and regulations.
How Can I Ensure My Building Work Complies with the Regulations for a Section 137B Owner Builder Report?
Consulting a licensed building inspector ensures your construction complies with regulations and helps avoid issues when preparing the Section 137B report.
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