Please contact us so we can get the details of what your inspection entails and provide you with a free, no obligation quote.
Contact us on 0418 532 161
Usually we can have these completed in 24-48 hours.
Reports are issued the same day.
What is a 137b Owner Builder Report?
According to the Building Act 1993, section 137B, prior to selling a home that has had building work completed by an owner builder, a 137B Owner Builder Report is required to be completed to disclose works completed and when required, issue insurance to form part of your Section 32 documentation. This report is only required for works completed in the last 6 years and 6 months.
Where applicable, this report allows the owner builder to purchase builders warranty insurance to protect the purchaser of the property for any works with a total value exceeding $16,000. This insurance covers non-structural defects for two years and structural defects for 6 years.
Even if you have only done minor works and the works are under $16,000, a report is usually required to disclose what works have been completed in the last 6.5 years
Only registered building surveyors, inspectors, architects or endorsed structural engineers can provide these reports.
If you have had works completed under a major building contract, your works should be covered under an insurance policy provided as part of those works.
Common issues about 137B reports.
Number 1
People don’t realise the wide-reaching scope of what “construct” mean in the building act, and therefor how wide reaching the scope of needing a 137B report is:
to construct a building means:
- build, re-build, erect or re-erect the building,
- repair the building,
- make alterations to the building,
- enlarge or extend the building,
- place or relocate the building on land
- manage or arrange the doing of anything referred to above
- cause any other person to do anything referred above
So using that very broad brush, any building works that fit within the 6.5 years completed by an owner builder need to be declared, this can be as basic as :
- Replacing floor coverings
- Changing doors or windows
- Re-pointing and painting the roof
- Fitting a new garage roller door
The list is endless.
Common works include
- Bathroom 1
- Bathroom 2
- Separate toilet or powder room
- Kitchen
- Laundry
- Internal painting
- External painting
- Floor coverings
- External Concrete
- Retaining walls
- Surface drainage
- Driveways
- Paths
- Roof Painting
- Rendering
- Window or door replacements
- Plaster replacement
- Decks
- Pergolas (unroofed) – a roofed pergola is a Verandah
- Verandah
- Sheds
If you are in any doubt, contact your solicitor / conveyancer for further information and to advise you on whether you need a 137B report and what the works you need reported on are.
Number 2
Building Permits. People don’t seem to understand that most building work requires a permit unless it fits a very specific exemption category. There is a great document available free on-line issued by the VBA (Victorian Building Authority), now the BPC (Building and Plumbing Commission). BP-01 When is a building permit required. Please refer to this document as to whether you need a building permit.
Some examples of what you need a permit for
- Verandahs
- Decks
- Some Sheds
- Any structural works
- Change of use, eg; converting a garage into a lounge or bedroom
If you have a permit great, please have a copy of these (if applicable)
- Building permit
- The final inspection certificate
- Certificate of Occupancy
Ready for the inspector so that it can be attached to the report.
If you do not have a building permit, if required, there are a few options
- Renew it to original condition
- Get a retrospective permit / get the works certified
- Disclose on the 137B report that it has been constructed without a building permit.
Experience shows us that most people go for option 3. Simply because this keeps the house sale progressing.
If you renew you have to do more works to renew and you don’t get the benefits of the work completed.
If you get a retrospective permit or get the works certified, this can be a costly process that takes time and will halt the sale of the property until the process has been completed.
Continuing on with the 137B report, discloses to the purchaser that you as the vendor are aware of, and are disclosing to them that you know the works have been completed without a permit.
Please note that the 137B report is not a building compliance certificate, it is a disclosure document. Works that have been completed without a building permit are NOT certified as part of the 137B process. The report will make is very clear that works have been completed without a building permit and that we cannot certify those works.
Number 3
Not telling the whole truth.
While this may seem obvious, it is very common for people to hide facts, omit facts or just try and slide something past unnoticed.
137B reports are not completed by Sherlock Holmes, we are not investigators or detectives, we are there at your request to complete a disclosure report on your behalf and to satisfy the requirements so you can sell your property. If you work against us, we cannot help you.
We can only report on what you tell us. If you fail to disclose works, or fail to tell us key facts our report may not be comprehensive and it may not cover what it needs to for you to fulfil your obligations.
Please work with us.
