ASTA Building Consultants
Professional 137B Reports and Building Consultancy Services
Trusted Experts in 137B Owner Builder Reports and Building Consultancy
ASTA Building Consultants are known for professional, reliable, helpful and friendly service. We are an architect/builder team with over 70 years combined experience in the building industry.
Rather than provide all types of building inspection reports, we specialise in providing 137B Owner Builder Reports and providing building advice as part of our consultancy service.
Our 137B Owner Builder Reports are aimed at providing the necessary information to ensure that the sale of your property is completed without cancellation or complications of the contract of sale and providing peace of mind to any potential buyers that may lead to better offers on your home.
There is no pass or fail with 137B Owner Builder Reports and we make the process of getting a report stress free and easy. Our reports are issued on the same day as the inspection.
ASTA Building Consultants are the only company you need for your 137B Owner Builder Reports throughout Melbourne and surrounding country areas.
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137B Owner Builder Reports
Our 137B Owner Builder Reports ensure the sale of your property is completed without complications or cancellation of the contract of sale by disclosing the works completed to the buyer.
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Contact ASTA Building Consultants today for expert 137B Owner Builder Reports and Building Consultancy services. Let us help you safeguard the sale of your property from complications and cancellation.
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Frequently Asked Questions
Answers to your 137B Owner Builder Report Questions
When is a 137B Owner Builder Report needed?
Under section 137B of the Building Act 1993, an owner builder who carries out building works on their property within 6.5 years of selling their property requires a 137B Owner Builder Report. The report is required to be disclosed to a potential buyer prior to the contract of sale being signed and is generally included within a section 32.
137B Owner Builder Reports are a legal requirement in Victoria and they apply to any construction works regardless of size or cost and is not limited to structural works. It is a misconception that only works over $16,000 or only works that required a building permit require a 137B Owner Builder Report.
Who is an owner builder?
You are an owner builder if you:
- Intend to use your own skills to build, extend or renovate your own home.
- Intend to manage sub-contractors to do construction works on your own home.
- Are a registered builder who builds, extends or renovates a home on your property.
If you arrange for a bathroom or kitchen company to renovate your bathroom and/or kitchen without a domestic building contract in place, this is considered to be managing a sub-contractor and you are the owner builder.
If you engage a tiler, a plumber and an electrician to renovate your home for you, this is also considered managing sub-contractors, and you are the owner builder.
If you engage a builder to extend or renovate your home and you have not entered into a domestic building works contract with the builder, then this is considered to be managing a sub-contractor.
Sometimes a contract is entered into with a company for example a shed or garage company, and a building permit is obtained listing the property owner as the builder on the building permit. In this case the property owner is the owner builder.
What does a 137B Owner Builder Report include?
An 137B Owner Builder Report must disclose all the building works that the property owner has completed within the last 6.5 years as an owner builder.
Typical examples of the building works may include carports, decks, verandahs, pergolas, garages, kitchens, bathrooms, laundries, extensions to homes or the construction of an entire home.
The report must disclose any defects, incomplete works or recycled building materials.
Can anyone perform a 137B Owner Builder Report?
No. In Victoria only registered Building Surveyors, registered Building Inspectors, registered Architects and endorsed registered Engineers are able to complete a section 137B report.
The report must be completed by one of these professions for it to be valid and legal. A report completed by anyone other than one of these professions is equivalent to having no 137B Owner Builder Report.
What is the purpose of the 137B Owner Builder Report?
The purpose of the report is to protect both the purchaser and the property owner (Vendor), with the purchaser being made aware of the condition of the renovated property before a transaction takes place.
Another purpose of the 137B Owner Builder Report is to allow the owner builder to obtain warranty insurance which is required for all construction works with a trade value of over $16,000.
What happens if I don't have a 137B Owner Builder Report?
The Vendor is in breach of Contract of Sale if they fail to provide a 137B Owner Builder Report prior to the signing of a contract of sale.
This could result in significant fines as well as allowing the purchaser to pull out of the Contract of Sale agreement at any time before the settlement without incurring any penalties.
In this case, if the Contract of Sale is cancelled, the purchaser is entitled to a full refund of the deposit.
If a builder renovates or extends their own home, is an owner builder 137b report still required?
How long does a 137B Owner Builder Report take?
When is warranty insurance required?
Owner builder warranty insurance is required for all construction works completed by an owner builder with a trade value over $16,000. For structural works, warranty insurance is required for a period of 6 years from completion of the works.
For non-structural works, warranty insurance is required for a period of 2 years from completion of the works.
Owner builder warranty insurance can be obtained through Buildsafe Insurance on 1300 763 016
If I have a building permit do I still need a 137B Owner Builder Report?
Yes. If the works are completed as an owner builder you require a 137B Owner Builder Report, regardless of the scale or the nature of the works. Having a building permit does not exclude you from the legal requirement of having a 137B Owner Builder report.
What if I fail the inspection?
There is no pass or fail. The 137B Owner Builder Report is all about disclosure of the condition of the construction works to the purchaser.
As long as the report is in place within the Section 32 detailing the condition of all the works that have occurred, then the Vendor is protected against the cancellation of the contract of sale.
Is the time frame always 6.5 years?
In most circumstances 6.5 years is the time frame that is applicable. The details are as follows:
- If a Building Permit exists AND a Certificate of Final Inspection or Occupancy Permit also exists, a 137B Owner Builder Report is require for 6.5 years from the date of the Certificate of Final Inspection or Occupancy Permit.
- If a Building Permit exists BUT a Certificate of Final Inspection or Occupancy Permit does not exist then a 137B Owner Builder Report is required for 7 years from the date of the Building Permit
- If no Building Permit exists then a 137B Owner Builder Report is required for 6.5 years from the date of commencement of the works.
Are there exemptions to the requirements for a 137B Owner Builder Report?
Yes. There are some exemptions to requiring an owner builder report. If only one trade is involved in the construction works, then a report is not required. For example if the only work completed is painting, then a 137B Owner Builder report is not required.
If you have constructed a wall, lined it with plasterboard and painted it, then that is considered to be three trades and a 137B Owner Builder Report is required. If you complete the work of all three trades yourself, it is still considered to be three trades.
It is advisable to have a discussion regarding your situation and what works you have completed.
Does a 137B Owner Builder Report still apply if I am going to auction?
Yes. A 137B Owner Builder Report applies in exactly the same way with an auction as it does to a private sale. Even under auction conditions, the buyer is able to cancel the Contract of Sale at any time, if a 137B Owner Builder Report is required and is not in place prior to the Contract being signed.
