What is the Section 137B Owner Builder Reports?

As per the State of Victoria, 1993 Building Act, Section 137B refers to all building and construction work that have been carried out by the property owner. And the owner wants to sell the property within about 6.6 years or so.

Therefore, as per this Building Act, if the property or building owner has carried out some construction work on their property and wants to sell it within the time of 6.6 years, then they should apply for a 137B Defects Inspection Report. This is commonly known as Section 137B Report.

If the property is sold after 6.6 years, then this report is not required.

The construction work carried out on the building is over $16000, then a warranty insurance is required.

What does Section 137B Report cover?

The Report covers the actual construction and building works carried out by the owner. This includes construction of garages, decks, carports, house or building additions and extensions. The report also covers the defects like some building work that is unfinished, defects, lack of maintenances and some natural wear and tear issues that have not been addressed.

How is the Section 137B Report used?

This report is added as a part of Section 32 Contract of Sale for prospective buyers to see. If the total building work exceeds $16,000, a building or warranty insurance must be availed by the owner. If the owner is going to sell the house, then this certificate will be a part of the pre-purchase contract. The warranty insurance covers defects for non-structural components for 2 years and for defects for structural components for 6 years.

How can help issue the Section 137B Reports?

As per the prescribed law, and legally, only certified, experienced and registered building inspection companies like R & E Petersen Pty Ltd and registered surveyors, inspectors, architects, structural engineers, and builders who are part of the building and construction industry can undertake the inspection of the building to help generate the Section 137B reports.

To learn more, call, 0418 508 112 or email us at libbypetersen@bigpond.com.