Victorian owner-builders
137B owner-builder defects report
If you completed owner-builder work in Victoria and are preparing to sell, you may need a current defects inspection report before the contract is signed.
What is a Section 137B report?
The name commonly refers to the defects inspection report required when certain Victorian owner-builder properties are sold. A registered building practitioner inspects the relevant work and records defects that are visible at the time of the inspection.
It is a sale document, not a warranty that the building is defect-free. Access restrictions, concealed work and areas outside the agreed scope should be identified in the report.
When sellers generally need one
- The property is being sold within six years and six months of completion of owner-builder work.
- The report is no more than six months old when supplied for the sale.
- It covers the relevant work, including renovations, extensions, garages or verandas where applicable.
- It is prepared by a registered building practitioner with the appropriate registration.
What to prepare for the inspection
Project records
Building permits, approved plans, occupancy permits or certificates of final inspection.
Work details
A clear list of the owner-builder work and when each part was completed.
Access
Safe access to the interior, exterior, roof space, subfloor and relevant outbuildings.
Sale timing
Enough time for the inspection, report and any separate insurance or conveyancing steps.
Frequently asked questions
When is a 137B owner-builder report required?
Consumer Affairs Victoria says an owner-builder selling within six years and six months of completing the work must provide a defects inspection report. The requirement applies to the owner-builder work regardless of its value.
How old can the defects report be?
The report must be no more than six months old when it is provided for the sale.
Who can prepare the report?
The report must be prepared by a registered building practitioner. Confirm that the practitioner’s registration is appropriate for the work and that they can provide the report needed for the sale.
Does the report replace legal or insurance advice?
No. The report records defects in the relevant building work. Sellers should separately confirm contract, disclosure and current insurance requirements with their conveyancer, insurer and the Building and Plumbing Commission.
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