137B Owner Builder Defect Inspection Report
Our inspections are conducted throughout greater Melbourne, including Geelong and the Mornington Peninsula. Different building type such as house, villa, townhouse, unit, apartment building inspection are conducted by our experienced trade qualified building inspectors and surveyors.
What's a 137B Owner Builder Defect Inspection Report?
The Building Act 1993 Section 137B refers to building works that have been carried out by an Owner Builder and the owner then wants to sell the home within 6.5 years of the works being completed.
Under the Act, an owner builder who carries out building works on their property and then decides to sell the property within 6 years and 6 months of the works being completed must obtain a 137B Defects Inspection Report. (Commonly known as Section 137B Report)
This report is a description of the building works the owner builder had built. It could be any building work not limited to but including, carports, decks, garages, extension or entire homes. The report describes any defects including incomplete works, deterioration, footings issues, framing issues, roof defects etc.
A 137B inspection report gets attached to the Section 32 Contract of Sale for potential buyers to see. If the value of the building work is more than $16,000, then building insurance must be obtained by the owner builder and a certificate of currency given to the buyer pre-contract. The insurance must cover structural defects for 6 years and non-structural defects for 2 years.
An owner builder is defined as someone who “constructs or renovates a domestic building on his or her own land, and who is not in the business of building”. Genuine owner builders do not intend to sell or rent the property immediately and must reside or intend to reside in the dwelling upon completion of the works. The Owner Builder must also be the owner of the property or the title holder.
A Section 137 B Inspection Report is required only if you sell the home within 6 years and 6 months of the works being completed. If you sell the home after 6 years and 6 months of the building works being completed, you don’t require one. The value of the works does not matter. The value of the works only matters in relation to warranty insurance. If the value of the works is over $16,000, the owner builder must get warranty insurance.
Only Registered Building Inspectors, Surveyors, Architects and Structural Engineers are legally authorised to carry out such inspection. Please note that registered builders are not authorised to do such inspection under the The Building Act 1993.
137B Owner Builder Report — Check or Quote
Not sure whether a Section 137B report is required? Check first, or go straight to an instant quote.
137B Report Cost and Common Questions
Section 137B reports start from $495. The price depends on the size and type of the owner builder works. Use the instant quote above for your property.
When is a 137B report required?
When you sell a home within 6 years and 6 months of completing owner builder works on it. This applies whatever the value of the works. After 6 years and 6 months, no report is required.
How long is a 137B report valid?
The report must be no more than 6 months old when the contract of sale is signed. If your sale takes longer, the report needs to be updated.
Who can prepare a 137B report?
Only registered building inspectors, building surveyors, architects and structural engineers. Registered builders are not authorised to prepare one. Our 137B reports are prepared by Alan Hou, registered building inspector (IN-L 100058).
What does a 137B report cover?
It describes the owner builder works, such as extensions, decks, carports, garages or entire homes, and lists any defects, incomplete work or deterioration. It is attached to the Section 32 for buyers to see.
Do I also need owner builder warranty insurance?
If the works are valued at more than $16,000, yes. Insurance is separate from the 137B report, and a certificate of currency must be given to the buyer before the contract.
Sample Inspection Report
23/05/2021 Our NBI inspector took his time to do a thorough inspection and answer all our questions afterwards. It was great value for prospective buyer like us. Have to give them 5 stars.
We used NBI after a friend recommended them to us for our pre-sale inspection of the property and they have been fantastic. Their website was easy to use and all the information you need was laid out clearly. No hidden costs whatsoever. The inspector completed their inspection and the report came out the same day.
21/02/2021 I had a new house stage inspections done through national building inspections and it was a great experience. They did detailed reports with photos and all the defects were masking taped so it was easy to identify and reinspect after rectification. Really professional and I would recommend them to anyone that wants a unbiased inspection report during construction.
05/12/2009 Good service at the right price. he was very detailed and save us from buying a lemon. I would highly recommend.
17/8/2018 Mac did such an outstanding job with the entire inspection. He scheduled with my agent from start to finish and come up with a detailed report. I am very happy with his work.
06/23/2015 Allan is prompt, professional and he communicates well with us. He explains his findings with figures and facts that enabled us to make an informed decision.
11/12/2018 Their followup is fantastic!