Am I an owner builder?

admin June 23, 2017

Owner builder repairsYou’ve completed some renovation work on your property within the last 6.5 years and now you’re looking to sell your property. However, you’ve just found out that your renovation work needs to be inspected and you require an Owner Builder Defects Report (otherwise known as a 137b Report). The report forms part of your Section 32 documents. You may be unaware of your obligations and have some questions to ask. The team at Urban are here to help.

Why am I classified as an owner builder?
You are an owner builder if you:

  • have used your own skills to build, extend or renovate your home
  • have co-ordinated sub-contractors to complete the renovation work for you
  • are a registered builder who builds, extends or renovates a home on your property.

An owner builder is responsible for obtaining the necessary building permits and making sure the work is completed to the required standard.

Why do I need an Owner Builder Defects Report?
The purpose of the Report is to protect both the purchaser and the owner. It’s important to note that it is mandatory by law, forming part of the Section 32, Contract of Sale documentation. The inspector will look at the renovation work or complete build and note its condition on the report. Effectively, the purchase then becomes ‘buyer-beware’ as the Report will advise of any problems with the property.

Who can prepare an Owner Builder Defects Report?
Under Victoria’s Building Regulations 2006, there are a number of building practitioners who can prepare an Owner Builder Defects Report. At Urban, we have a number of inspectors who fulfil the requirements to complete this type of work.

How quickly can I get the Report?
We understand that you’ll need the Report as quickly as possible. Our team will endeavour to meet your requirements in organising the inspection time. If you cannot attend the inspection, we will need someone to arrange access to your property for the inspector. The Report will be emailed directly to you so the turnaround time is fast and convenient.

Please note: the Owner Builder Defects Report is valid for six months.

Do I also need Owner Builder Warranty Insurance?
You will need to obtain Warranty Insurance if the value of the domestic work is over $16,000 and if the property is being sold within six years of completion. If the value of the work is less than $16,000, then only an Owner Builder Defects Report is required.

What if I don’t get an Owner Builder Defects Report?
Under the Victorian Building Act 1993, it is an offence to sell your property within six years without a Defects Report and Warranty Insurance (if required). There are significant penalties applicable to this offence so it’s in your best interest to carry out your obligations as an owner builder.

Give our team a call today to arrange your Owner Builder Defects Report on 1300 071 283 or click here for a free quote.