Under Section 137B of the Building Act 1993 (VIC), any owner-builder selling a property in Geelong within 6.5 years of completion must obtain an inspection report from a Licensed Building Practitioner (LBP). This report assesses whether the construction meets applicable building standards and identifies any defects that could affect safety or structural integrity. Without this report, the sale cannot proceed lawfully, and the seller may face legal consequences.
If you built your own home in Geelong, or managed the construction yourself, and you plan to sell within that 6.5-year window, the Section 137B inspection is not optional. It protects buyers by giving them a clear picture of the property's condition, and it protects you as the seller by demonstrating compliance with Victorian building regulations. Understanding the process, costs, and what the report covers will help you prepare for a smooth and transparent property transaction.
What Is a Section 137B Inspection Report?
A Section 137B inspection report is a formal assessment prepared by a Licensed Building Practitioner (LBP) under the Building Act 1993 (VIC). It evaluates an owner-built property to determine whether the construction work complies with the relevant building standards and identifies any defects or non-compliance issues.
This report is specifically required for properties where the owner was directly involved in the building process, either by managing the project themselves or by physically carrying out construction work. The requirement exists to protect future buyers from purchasing a property that may have been built without the same level of oversight that a licensed builder would provide.
Who Needs a Section 137B Inspection Report?
Not every property sale in Geelong triggers this requirement. The mandate applies to a specific set of circumstances.
- Owner-built properties: Homes where the owner managed or participated in the construction process
- Collaborative builds: Properties where the owner completed some work and contracted out other parts
- Sale within 6.5 years of completion: If the property is being sold within 6.5 years of the date the building work was completed, the report is required
If your property falls within these criteria and you sell without a Section 137B inspection report, you may be in breach of Victorian building legislation. This can expose you to legal action from the buyer.
What the Report Covers
The Section 137B inspection report is a thorough assessment. Here is what you can expect to find in the document.
| What It Includes | Why It Matters | |
|---|---|---|
| Property Overview | Full description of the property layout, materials used, architectural design, and structural elements | Establishes a baseline record of the property's physical characteristics |
| Building Standards Assessment | Identification of the specific standards and NCC requirements applicable to the property | Shows the benchmark the property needs to meet |
| Inspection Findings | Summary of the inspection results, highlighting areas of compliance and areas needing attention | Gives the buyer a clear understanding of the property's condition |
| Recommendations | Professional advice on repairs, modifications, or improvements needed | Helps sellers address defects before listing, reducing sale complications |
How to Get a Section 137B Inspection in Geelong
The process of obtaining a Section 137B inspection report follows a clear sequence.
Choose a Licensed Building Practitioner
Select an LBP who is registered with the Victorian Building Authority (VBA) and has experience with Section 137B inspections. Look for practitioners with a track record in Geelong and surrounding areas. Recommendations, reviews, and VBA registration checks are good starting points.
Provide documentation
Give the LBP access to your building plans, permits, certificates of occupancy, and any relevant construction records. The more information they have, the more thorough and accurate the assessment will be.
Schedule the inspection
The LBP will conduct an on-site inspection of the property, examining structural elements, weatherproofing, plumbing, electrical installations, and compliance with the NCC and applicable Australian Standards.
Receive and review the report
Once the inspection is complete, the LBP prepares the written report. Review it carefully and address any identified defects before listing the property for sale.
Provide the report and certificate to the buyer
At the point of sale, you must provide the buyer with both the Section 137B inspection report and the LBP's certificate of currency. This demonstrates that the report is current and valid.
Costs of Section 137B Inspections in Geelong
The cost of a Section 137B inspection in Geelong varies depending on several factors.
- Starting price: Typically from $1,000 AUD upwards
- Property size: Larger homes with more rooms and structural complexity cost more to inspect
- Unique features: Properties with pools, retaining walls, detached structures, or unusual designs may incur additional charges
- Depth of inspection: Some properties require more detailed assessment, particularly if construction documentation is incomplete
While the cost may seem significant, it is a small price compared to the legal and financial risks of selling an owner-built property without the required documentation.
Benefits Beyond Compliance
The Section 137B inspection report serves purposes well beyond meeting a legal obligation.
- Peace of mind: Knowing that your property meets established building standards provides confidence throughout the sale process
- Stronger sale position: Buyers are more likely to pay a fair price for a property that comes with a professional inspection report confirming its quality
- Early defect identification: The inspection can reveal problems that, if fixed early, cost far less than they would after years of neglect
- Transparent transaction: Providing the report to buyers builds trust and reduces the likelihood of post-sale disputes
Handling Defects Found During the Inspection
It is common for Section 137B inspections to identify defects, ranging from minor cosmetic issues to more significant structural concerns.
Assess the severity
Review the inspection report's findings with the LBP to understand which defects are minor and which require immediate attention.
Engage qualified tradespeople
For any rectification work, use licensed and insured tradespeople. Ensure the repairs address the root cause, not just the visible symptoms.
Document all repairs
Keep records of all remediation work including invoices, photos, and compliance certificates. This documentation supports the sale process and protects you if questions arise later.
Consider a follow-up inspection
For significant defects, a follow-up inspection by the LBP can confirm that repairs have been completed to the required standard.
Achieving Full Compliance
To fully comply with Section 137B, sellers must provide the buyer with two documents at the point of sale:
- The Section 137B inspection report prepared by a Licensed Building Practitioner
- The LBP's certificate of currency, confirming the report is valid and up to date
Without both documents, the transaction is not compliant with the Building Act 1993 (VIC). Schedule the inspection well ahead of your planned sale date to allow time for any necessary rectification work.
Key Takeaways
- Owner-builders in Geelong must obtain a Section 137B inspection report before selling within 6.5 years of construction completion.
- The report must be prepared by a Licensed Building Practitioner registered with the Victorian Building Authority.
- Costs start from approximately $1,000 AUD and vary based on property size and complexity.
- The report covers property layout, building standards compliance, inspection findings, and recommendations.
- Both the inspection report and the LBP's certificate of currency must be provided to the buyer at sale.
- Early inspection allows time to address defects before listing, strengthening your sale position.
- Selling without the required report can expose you to legal action under the Building Act 1993 (VIC).
Frequently Asked Questions
QWhat is a Section 137B inspection report?
A Section 137B inspection report is a formal assessment required under the Building Act 1993 (VIC) for owner-built properties being sold within 6.5 years of completion. It is prepared by a Licensed Building Practitioner and evaluates whether the construction meets applicable building standards.
QWho needs a Section 137B inspection in Geelong?
Any owner-builder selling a property in Geelong within 6.5 years of completing the building work needs this report. This includes properties where the owner managed the build, did some of the work themselves, or collaborated with contractors on the construction.
QHow much does a Section 137B inspection cost in Geelong?
Costs typically start from $1,000 AUD and increase based on the property's size, complexity, and any unique features such as pools or retaining walls. Contact a Licensed Building Practitioner for an exact quote based on your property.
QWhat happens if I sell without a Section 137B report?
Selling an owner-built property within 6.5 years of completion without the required Section 137B report is a breach of the Building Act 1993 (VIC). The buyer may have grounds for legal action, and you could face penalties for non-compliance.
QWhat does a Section 137B inspection cover?
The inspection covers the property's structural elements, weatherproofing, plumbing, electrical work, and compliance with the National Construction Code and applicable Australian Standards. The report includes a property overview, findings, and recommendations for any rectification work needed.
QHow long does a Section 137B inspection take?
The on-site inspection typically takes several hours depending on the property's size and complexity. The written report is usually delivered within a few business days after the inspection. Allow additional time if follow-up inspections are needed after rectification work.
QCan I choose any inspector for a Section 137B report?
No. The report must be prepared by a Licensed Building Practitioner (LBP) registered with the Victorian Building Authority (VBA). Not all building inspectors hold this registration, so confirm the practitioner's credentials before engaging them.
QWhat if defects are found during the Section 137B inspection?
If defects are identified, you should arrange rectification work through qualified tradespeople before listing the property for sale. Document all repairs with invoices, photos, and compliance certificates. For significant defects, a follow-up inspection can confirm the work has been completed to the required standard.
QIs the Section 137B report the same as a pre-sale building inspection?
No. A Section 137B report is a specific legal requirement for owner-built properties under the Building Act 1993 (VIC). A pre-sale building inspection is a broader assessment that any seller can commission to identify defects before listing. They serve different purposes, though both can help improve a property's sale prospects.
QWhen should I schedule my Section 137B inspection before selling?
Schedule the inspection well before your planned listing date, ideally several weeks to a few months in advance. This gives you time to review the report, address any defects, arrange rectification work, and potentially get a follow-up inspection if needed.
References and Resources
- Building Act 1993 (VIC) - Section 137B - Victorian legislation governing owner-builder property sales
- Victorian Building Authority (VBA) - Building practitioner registration and regulatory oversight
- Consumer Affairs Victoria - Owner Builders - Information on owner-builder obligations in Victoria
- National Construction Code (NCC) - Building standards applicable to residential construction
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Selling an owner-built property in Geelong? Owner Inspections provides Section 137B inspection reports prepared by Licensed Building Practitioners registered with the VBA. We cover Geelong and surrounding Victorian suburbs. Get a quote today or call us on 1300 471 805.