Have you completed any renovation work on your property within the last 6.5 years?
Are you now ready to sell?
If you’re in this situation, you may have just found out that you need to get an Owner Builder Defects Report (otherwise known as 137b Report or Building Defects Report). At The Home Inspection Hub, we understand that a Defects Report can be an unpleasant surprise. So let us explain why you need it and how we can help through the process.
Under Section 137B of the Building Act 1993, any renovation work that has been completed needs to be inspected by a suitably qualified person. The Owner Builder Defects Report forms part of your Section 32 documents. The purpose of the report is to protect both the purchaser and the owner so they know the condition of the renovated property before a transaction takes place.
The report highlights any faults or defects in the building work, any incomplete work and will identify if second-hand materials have been used. Some of the types of renovation work we check include:
Why is an Owner Builder Defects Report with The Hub so important?
An owner builder is defined as someone who “constructs or renovates a domestic building on his or her own land, and who is not in the business of building”.
If the value of the domestic work is over $16,000 and the property is being sold within six years of completion, then you must obtain Domestic Building Insurance (previously called Warranty Insurance). If the value of the works is below $16,000, you only need to obtain an Owner Builder Defects Report.
It is useful for the Inspector to review any documentation relating to the renovation work. This may include house plans, soil reports, structural engineering reports, occupancy permit, electrical or plumbing certificates. If available, this documentation can be reviewed as part of the inspection.
The team at The Hub are here to help with your queries. For additional references and resources, you can check out these sites:
Victoria Building Authority (VBA): http://www.vba.vic.gov.au/consumers/owner-builders
Consumer Affairs Victoria: https://www.consumer.vic.gov.au/housing/building-and-renovating/owner-builders