Quick answer:A Section 137B owner-builder report is a defects inspection document required under the Building Act 1993 when you sell an owner-built property in Victoria within 6 years and 6 months of finishing the work. A registered building inspector prepares it. The report must be attached to the Section 32 Vendor Statement before you sign a contract of sale.
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Selling an owner-built home in Victoria comes with a paperwork step many vendors don’t see coming. If you completed building work on your own land without a registered builder, the law expects you to hand the buyer a defects report before contracts are signed. Miss it, and your sale can stall, fall over, or land you in a dispute.
The rules are set out in Section 137B of the Building Act 1993. They apply whether you added a deck, converted a garage, or built the whole house yourself. This guide walks through what the report covers, when you need one, who can prepare it, and how the process actually plays out from booking to settlement.
Key Takeaways:
- A Section 137B owner builder report is legally required when selling an owner-built property within 6 years and 6 months of finishing the work under the Building Act 1993.
- Only registered building inspectors, surveyors, architects, or engineers who are independent of the owner-builder can prepare the report.
- The report identifies structural defects, non-structural defects, incomplete work, and the use of second-hand materials.
- Domestic building insurance is a separate requirement for owner-builder work valued over $16,000 and must be arranged alongside the report.
- The report must be dated within 6 months of the contract of sale and attached to the Section 32 Vendor Statement.
- Skipping the report can trigger civil penalties, contract disputes, or give the buyer grounds to walk away from the sale.
What is a Section 137B owner builder report?
A Section 137B report is a defects inspection report prepared before you sell a property where you carried out building work as an owner-builder. It sits under Section 137B of the Building Act 1993 (Vic) and forms part of the mandatory disclosure to any potential buyer.
The purpose is straightforward. Buyers deserve to know if any of the building work you completed has defects, is incomplete, or used second-hand materials before they sign a contract of sale. The report gives them that picture in writing, with photos.
The Victorian Building Authority maintains a public register of owner-builder certificates of consent issued since 1 September 2016. Buyers, agents, and conveyancers can search this register to check whether a property was built or renovated under owner-builder rules. That transparency is why the defects report matters.
Who counts as an owner-builder in Victoria?
An owner-builder is someone who takes responsibility for domestic building work on their own land rather than engaging a registered builder. If your project is valued over $16,000, you need a Certificate of Consent from the Victorian Building Authority before you can obtain a building permit.
The VBA eligibility rules restrict owner-builders to one project every five years. You must also intend to live in the property once the work is done. The system exists for genuine owner-builders working on their own home, not for people using owner-builder status to skirt commercial builder obligations.
Owner-builder projects can include new dwellings, renovations, extensions, or ancillary structures like garages, pergolas, retaining walls, and pools. If you did any of that work yourself or arranged the trades directly without a registered builder overseeing the job, you’re likely an owner-builder for the purposes of Section 137B.
When do you need a 137B owner builder report?
The trigger is the sale. If you sell your property within 6 years and 6 months of finishing the work and a building permit was issued, you need a Section 137B report. If no permit was issued, the obligation extends to 10 years after completion.
The report must be dated within 6 months of the contract of sale. An older report won’t satisfy the disclosure requirement. If your inspection was done more than 6 months before you sign, you’ll need a fresh one.
The multiple-trade test also matters. If the work required skills from more than one trade (plumbing plus tiling plus electrical, for example), a 137B report applies even if a single handyman did all of it. Single-trade jobs like a straight repaint or a hot water system swap may be exempt, but the exemption is narrow.
When a 137B report is (and isn’t) required
Scenario | Report required? | Why |
Converted a wardrobe into an ensuite | Yes | Multiple trades involved |
Built a new deck without a building permit | Yes | Carpentry is non-exempt |
Major kitchen renovation with rewiring | Yes | Multiple trades in one project |
Added an extension using an unlicensed contractor | Yes | Treated as owner-builder work |
Repainted the interior only | No | Standalone single-trade job |
Replaced carpet or hot water system | No | Exempt single-trade work |
Retiled a bathroom as a standalone job | No | Tiling is exempt if isolated |
What does a 137B defects report include?
A proper 137B report gives the buyer a clear read on what was built and what condition it’s in. The document isn’t a certificate of compliance. It’s a defects record with photos and inspector commentary.
The inspector documents the scope of the owner-builder works first, then walks through defects grouped by severity. Structural defects cover things that affect the safety or durability of the building, like cracked footings, poorly framed walls, or waterproofing failures. Non-structural defects are cosmetic or minor issues such as chipped tiling or paint imperfections that still need disclosure.
Beyond defects, the report flags any incomplete work, the use of second-hand or recycled materials, and areas that don’t meet building codes. High-resolution photos sit alongside each finding so the buyer, their conveyancer, and any future inspector can see exactly what the inspector saw. Where relevant, supporting documents like your building permit, occupancy permit, or final inspection certificate are referenced.
Section 137B report vs domestic building insurance
These two often get lumped together, but they’re separate obligations. The 137B report is the defects inspection document. Domestic building insurance is a separate policy that covers the buyer if defects appear after settlement.
If your owner-builder work was valued over $16,000, you’re legally required to arrange domestic building insurance before selling. The policy covers structural defects for 6 years and non-structural defects for 2 years from the date of completion. Both the report and the insurance certificate need to be attached to the Section 32 Vendor Statement.
The insurer relies on the inspection report to underwrite the policy. If the report shows major unresolved defects, the insurer may ask you to rectify them before issuing cover. This is one reason we recommend booking the inspection early. You need time to fix things if issues turn up.
Who can prepare a 137B owner-builder report?
Only a registered building practitioner independent of the owner-builder can prepare the report. That usually means a registered building inspector, a building surveyor, an architect, or a structural engineer. You can verify credentials through the VBA’s find a practitioner tool.
Independence matters. The inspector can’t have a personal or financial connection to you. A mate who happens to be a builder doesn’t qualify. If you want your report to hold up during the sale, book with a qualified inspector who specialises in owner-builder work. Ripple’s 137B inspection service covers Geelong and Melbourne metropolitan suburbs, with fixed-fee pricing and next-business-day reports.
What happens if you skip the 137B report?
Non-compliance with Section 137B isn’t a technicality. The Building Act 1993 gives buyers real remedies if you fail to properly disclose owner-builder defects.
A missing or incomplete report gives the buyer legal grounds to rescind the contract. You could face civil penalties, disputes at VCAT, or delays that push your settlement date out by weeks. If defects surface after settlement and you never disclosed them, the buyer may pursue you for the cost of repairs.
The report also protects you. If you disclose defects up front and the buyer signs the contract anyway, you’ve done your part. Trying to hide known issues almost always backfires because buyers commission their own pre-purchase inspections and find them anyway.
How the 137B inspection process works
The process is simpler than most vendors expect. Here’s what it looks like from booking to final report.
- Step 1. Confirm you need one. Check your completion date, whether a permit was issued, and the scope of your works. If you’re unsure, your conveyancer or an inspector can advise.
- Step 2. Gather your paperwork. Building permits, approved plans, occupancy permit or certificate of final inspection, and any warranty documents. The inspector will ask for these before the site visit.
- Step 3. Book the inspection. A qualified inspector attends the property. Access to the roof space, subfloor, and any accessible areas is important. Clear obstructions before the visit.
- Step 4. On-site inspection. The inspector documents the owner-builder works, checks for defects and incomplete items, and takes photos. Most inspections take 2 to 4 hours, depending on the property’s size.
- Step 5. Receive your report. Turnaround is typically 1 to 2 business days for a completed PDF report with photos, findings, and recommendations.
- Step 6. Attach to Section 32. Give the report to your conveyancer for inclusion with the Vendor Statement. If domestic building insurance is required, arrange that certificate at the same time.
137B report cost and turnaround in Victoria
A standard 137B report in Melbourne and Geelong typically ranges from $300 to $800. The variation comes down to property size, the scope of works being inspected, and how much supporting documentation you can provide up front.
A small renovation on a townhouse sits at the lower end. A fully owner-built home with extensive work falls at the higher end because the inspector needs more time and the report is longer. Urgent turnaround options may cost extra.
Book your inspection 3 to 4 weeks before your listing goes live. This gives you buffer time to address any defects the inspector identifies before buyers see the property. If your report shows unresolved structural issues, rectifying them before contract signing is far cheaper than negotiating price reductions after buyers have completed their own inspection.
Owner-builder rules outside Victoria
Owner-builder obligations vary across Australia. Ripple services Victoria only, but here’s a brief overview if you’re selling interstate.
New South Wales.
Owner-builder work over $20,000 requires a permit through NSW Fair Trading. Before selling within the statutory warranty period, you need home warranty insurance through the Home Building Compensation Fund. Coverage runs 6 years for major defects and 2 years for minor defects.
Queensland.
Owner-builders must complete an approved owner-builder course before applying for a permit through the Queensland Building and Construction Commission. The course typically takes around 6 to 8 hours to complete and covers building law, safety, and construction standards. A Form 21 Final Inspection Certificate is required before you can occupy or sell.
Other states.
Western Australia, South Australia, Tasmania, ACT, and the Northern Territory each have their own frameworks. If you’re selling outside Victoria, check with a local inspector or your state building authority for the exact obligations.
Ready to book your 137B inspection?
Getting your 137B report sorted early takes the pressure off the sale. You know what you’re disclosing, your conveyancer has what they need, and your buyer sees a vendor being upfront about the property’s condition.
Ripple Building Inspections covers Geelong and Melbourne metropolitan suburbs with fixed-fee pricing and next-business-day reports available. Book your 137B inspection online or call 0468 480 066 to check availability for your area.
FAQs about 137B owner builder report
A 137B owner-builder report is a defects inspection document required under Victorian law when selling an owner-built property within 6 years and 6 months of finishing the work. In Melbourne, the report is prepared by a registered building inspector and included with the Section 32 Vendor Statement.
Section 137B of the Building Act 1993 requires owner-builders selling their property within 6 years and 6 months of completing building work to provide a defects inspection report to the buyer. Where no building permit was issued, the timeframe extends to 10 years.
A 137B report must be dated within 6 months of the contract of sale. If your report is older than that when you sign, you’ll need a fresh inspection.
No. If your sale falls within the 6-year, 6-month window and your works were owner-built, the report is mandatory. Selling without it exposes you to civil penalties and gives the buyer grounds to rescind the contract.
