A Section 137B report, sometimes referred to as an owner builder defects report, must be prepared by an independent building inspector or licensed practitioner when an owner builder sells a home within six years and six months of completing any building work. The report must be dated within the six months prior to the contract of sale.
This requirement applies whenever renovation or extension work was carried out by an owner builder rather than a registered builder. It covers a wide range of jobs from a small job such as replacing flooring or retiling to a bigger project like bathroom renovation, pergolas or room additions, even if a building permit was obtained but no professional inspection was undertaken.
The primary purpose of the defects report is to assess that the owner builder works have been fully completed, that no damaged or recycled materials have been used and that any outstanding defects or unfinished elements are clearly documented. It is not intended as a full compliance audit against every building code or standard but rather as a practical review to highlight any issues that a purchaser should be aware of.
When the value of owner builder work exceeds sixteen thousand dollars, the owner must also provide evidence of domestic building insurance under the Building Act 1993 (Vic). Both the defects report and, if required, the insurance certificate must be attached to the vendor’s section 32 statement before the sale contract is signed, ensuring transparency and protecting both parties against latent defects.
Altez is a professional, independent inspection company that vendors and buyers can rely on, and has been referred to by many conveyancers and solicitors.
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