What is a Section 137B Owner Builder Report?
A Section 137B Report is a mandatory defects inspection for Victorian owner-built properties being sold within 6 years and 6 months of completion. It must be prepared by a prescribed building practitioner, which means a registered building inspector, building surveyor or engineer, or a registered architect. It applies to owner builder work of any value, with no minimum dollar threshold. This report ensures buyers are informed of any defects in owner-built properties.
How We Help You Meet Section 137B:
Our team guides you through the process, from collecting your permit documents to a thorough inspection using current technology. We provide reports tailored to the individual property with prompt turnaround times, giving the buyer a clear, independent record of the owner-builder work and reducing the risk of later disputes about what was disclosed.
Do You Count as an Owner Builder?
Section 137B applies when three things are true: you carried out domestic building work on your own land as an owner-builder, the work was completed less than six years and six months before the contract of sale, and you are selling.
The building permit is the clearest test. If it names you as the owner-builder, you are one, even if you hired tradespeople to do the physical work while you managed the project. Work carried out entirely by a registered builder under a contract is different: the builder's warranties and insurance apply instead, and no 137B report is needed for it.
Many homes involve both, such as a builder's original house with a later owner-builder extension. In that case the report covers the owner-builder work only, and it should say clearly which work that is, so the buyer is not left guessing where the builder's responsibility ends.
What the Report Covers, and What It Does Not
The report starts with a description of the owner-builder work, the inspection date and the practitioner's details. It then lists every defect and non-compliant item observed, each with a photograph and a written description of its likely impact. Findings are grouped by building element, such as site drainage, framing, flooring, roofing and wet areas, and each is noted as minor or major so the buyer and their advisers can judge how serious it is.
The report is not a pre-purchase inspection and it is not a certificate that the work is compliant. It records the condition of the owner-builder work on the day of inspection, not the general condition of the whole property. Because the inspection is visual, concealed defects may need further investigation, and where a finding points to a deeper problem a defect investigation report can go further.
How to Prepare for Your Section 137B Inspection
Confirm the completion date first. It is usually taken from the occupancy permit or certificate of final inspection, and it decides whether the sale falls inside six years and six months.
Gather the building plans, permits, certificates and any construction records, and have them ready for the inspector. Items that differ from the permit documents are recorded as findings. Make sure every part of the owner-builder work can be reached on the day, including any roof space or subfloor it involves.
Then get the timing right. The report must be no more than six months old when the contract of sale is signed, so book it close to listing rather than when the work finishes. If the property is still unsold six months after the inspection, a fresh inspection and report are needed. Where domestic building insurance is also required, insurers usually want to see the report first, so the inspection comes before the policy. Give the report, and the insurance evidence if needed, to your conveyancer before marketing begins.
If the Report Finds Defects
A report that lists defects does not stop the sale. Its job is disclosure, not approval: the buyer learns about the defects before signing and can factor repairs into their decision and their offer. You are not required to fix them before selling.
Unresolved major defects can still reduce the sale price and put buyers off. Owners who want a cleaner report often fix the significant items they already know about before booking the inspection, so the report records the repaired work.
Section 137B Inspections Across Melbourne
We prepare Section 137B reports across Melbourne and its suburbs, whether the owner-builder work is a new home in Craigieburn, a second storey in Brunswick or an extension in Frankston. We also inspect owner-built properties in surrounding parts of Victoria.
