Who needs an owner builder report?
Everyone who sells their property, needs to engage a Conveyancer to prepare a Section 32 statement, which includes a Vendor Statement. As part of the Vendor Statement, if you sell your property within six years and six months of completing building work as an owner builder, under Consumer Affairs Victoria law, you must:
- provide an owner building report which is a defects inspection report not more than six months old from a qualified inspector for all work regardless of value, including extensions, renovations, garages and verandas; and
- take out domestic building insurance for work over $16,000, to protect the person who buys your property. The insurance covers non-structural defects for two years and other defects for six years. After six years the property is no longer covered by domestic building insurance.
Domestic building insurance
Domestic building insurance, previously known as ‘builders warranty insurance’, protects the buyer if you (as the owner builder) die, become insolvent or disappear.
To get domestic building insurance, you will need:
- the defects report
- domestic building insurance certificates given to you by builders or tradespeople for work on your project.
The cover becomes effective once the contract of sale is signed. The buyer can only use the insurance when the owner builder has died, becomes insolvent or has disappeared. It covers costs up to $300,000 to fix:
- structural defects, for six years
- non-structural defects, for two years.
Domestic building insurance does not cover defects or incomplete work identified in the defects inspection report.
Under the Domestic Building Contracts Act 1995 and Building Act 1993, warranties apply by law to all domestic building work. Warranties transfer to a new owner for up to 10 years from completion of the work.
Who can do a 137B Owner Builder Report?
137B Owner Builder Reports can only be completed by registered structural engineers, architects, registered building surveyors and registered building inspectors. Most inspectors in Melbourne cannot complete these reports.
How much does an owner building report cost?
Building and Pest Inspection Melbourne perform owner builder reports in Greater Melbourne from $550 inc gst. Price depends on the scope of works to be reported on. Our owner builder reports are completed by a structural engineer licensed under Victorian law. Book your inspection or call us now on 0408 666 539 to find out more.