OWNER – BUILDER (137b Defects) REPORTS or works
ANY Owner-Builder works completed within the last 6 ½ years must have an Building Independent inspection report if you are selling your property.
If these works are valued at $12,000 or more on a RETAIL value, per project completed within 6 years, then separate Owner-Builder Insurance must also be provided
Either of the above MUST be provided with the section 32 AT TIME OF SIGNING THE CONTRACT If they are not provided, then the purchaser can cancel the contract WITHOUT PENALTY, even if it’s unconditional and you can incur a fine of upto $10,000.
This report can only be provided by registered and approved Building Practitioners that have special Insurance to cover these inspections. Austhomes Inspections specializes in these inspections and reports. We are a preferred Inspector for some Owner-Builder Insurance companies.
SECTION 137b OWNER-BUILDER DEFECTS REPORT
A defects report is required on any building works completed on your property within the last 6 ½ years if you have constructed them as an Owner-Builder (i.e. –No Registered Builders warranty on the works).
The building works inspected are irregardless of their value (including works under $5,000), whether or not they have a permit and include;
Houses, additions, alterations (including non-structural alterations), renovations, Rendering, repainting, Bathroom & Kitchen refits, wall & floor tiling under 2 years old, Verandahs, Pergholas, Decks, Garages. Sheds, Fences, retaining walls, pools etc… Not included are;
Licensed works such as – Plumbing, Electrical, Gas, Termites and Fittings such as Carpets, curtains, looselay floors, light fittings.
OWNER-BUILDER INDEMNITY INSURANCE
Insurance is required on any Owner-Builder works carried out within the last 6 years that exceeds $12,000 (RETAIL VALUE) per project which has no Builders warranty. bitoms.org/a-guide-to-different-ovens-no-matter-where-you-live This Insurance is provided by a limited number of approved Insurers and they require an Owner-Builder 137b report, Building Permit copy, Final certificate copy, application form and a fee paid. The Insurance period commences from final inspection or works completion.
You need to know that anything that goes wrong, fails or is defective on the owner-builder works during the 6 year warranty period must be repaired by the owner-builder at their own cost. The warranty will only cover the defective works if the owner-builder is deceased, bankrupt or missing (eg-overseas).
This information is only a guide and Insurers or Legal advice must be obtained relating to these issues. See FAQ page in our website.