If you built your own home in Victoria and you’re planning to sell within the warranty period, you’ve probably come across the term Section 137B report and wondered whether it applies to you. A 137b report is a legal requirement for many owner-builders who don’t hold valid owner-builder warranty insurance, and getting it wrong can hold up a sale or leave you exposed to a dispute after settlement. This guide explains what a 137b owner builder report involves, who actually needs one, what a 137b defects report covers, and how a qualified inspector carries out the assessment.
What Is a Section 137B Report?
Section 137B of the Building Act 1993 (Vic) sets out what an owner-builder must do if they sell a property within six years of the building work being completed and they don’t have current owner-builder warranty insurance in place. In that situation, the owner-builder must arrange a report from an independent, appropriately qualified building practitioner assessing the standard of the work and identifying any defects. This document is what’s commonly referred to as a section 137b owner builder report, or simply a 137b inspection report, and it’s given to the purchaser as part of the sale process.
The report exists to protect buyers who would otherwise have no warranty cover on work carried out by someone who isn’t a licensed builder, while also giving the seller a documented, independent record of the property’s condition at the time of sale.
Who Needs a 137B Owner Builder Report?
You’re likely to need one if any of the following apply to your situation:
- You carried out owner-builder work and are selling within six years of the certificate of final inspection or occupancy permit.
- You don’t hold valid owner-builder warranty insurance covering the work, or the insurance doesn’t cover the full scope of what was built.
- Your original insurance has lapsed, was never taken out, or excludes part of the build (for example, a later renovation or extension).
- You’re unsure whether your existing paperwork satisfies the warranty insurance exemption and want independent confirmation before listing.
If none of this applies and you hold current, valid warranty insurance covering the relevant work, a 137b report generally isn’t required. It’s worth confirming your position early, well before you sign an agent’s agreement, since sourcing the report can take a little time to arrange.
What Does a 137B Defects Report Cover?
A 137b defects report is a hands-on assessment of the building work itself, not a paperwork exercise. A registered building practitioner physically inspects the property and reports on:
- The structural adequacy of footings, framing, and roof structure
- Waterproofing and drainage around wet areas and the building envelope
- Whether the completed work is consistent with the approved plans and permits
- Compliance with the National Construction Code and relevant Australian Standards
- Any visible defects, incomplete work, or workmanship that falls short of accepted trade standards
Because the report has to be prepared by someone independent of the owner-builder, it can’t be self-assessed. The value of a 137b inspection report lies precisely in that independence, it gives a purchaser confidence that the assessment wasn’t written by the person who built the house.
Why the Report Matters When Selling
A section 137B report isn’t just a formality. It’s a legal disclosure obligation that typically needs to be attached to the vendor’s statement before contracts are exchanged. Skipping it, or leaving it until late in the sale process, can delay settlement, give a purchaser grounds to withdraw, or leave you exposed to a claim after the sale if undisclosed defects come to light. Arranging your 137b owner builder report early, ideally as soon as you decide to sell, keeps the transaction on schedule and gives you time to address anything the inspection identifies.
How a 137B Inspection Works
Our 137B inspection service is carried out by VBA-registered inspectors, following the assessment standards set out in AS 4349.1. Every inspection is fixed price with no hidden costs, and you’ll have your report in hand within 24 hours, which matters when you’re working to a settlement timeline.
On site, the inspector works through the structure, wet areas, roof space, and sub-floor where accessible, checking the standard of construction against the approved plans and current building requirements. Where relevant, a timber pest inspection can be arranged alongside the building assessment, including a check for termite activity and conducive conditions, which is worth considering for older owner-built homes or properties backing onto bushland.
Choosing the Right 137B Inspectors in Melbourne
Not every building inspector is set up to prepare a compliant section 137B report. When choosing who to engage, look for:
- Current VBA registration and demonstrated experience with owner-builder reports specifically
- A clear, fixed-price quote with no surprise add-ons once the inspector is on site
- A fast, realistic turnaround so the report doesn’t hold up your sale timeline
- A written report that clearly separates genuine defects from minor, cosmetic wear
As Melbourne building and pest inspection specialists, we prepare section 137b owner builder reports across Melbourne metro and regional Victoria, with the same fixed pricing and 24-hour turnaround that applies to all our inspections.
Frequently Asked Questions
What is included in a Section 137B report?
A 137b report includes a physical inspection of the structure, waterproofing, and general workmanship, an assessment against the approved plans and the National Construction Code, and a clear list of any defects found. It’s provided to the purchaser as part of the sale documentation.
Who can prepare a 137B inspection report?
Only an independent, appropriately qualified and registered building practitioner can prepare a compliant 137b inspection report. The owner-builder themselves can’t self-certify the work.
How long does a 137B owner builder report take?
The site inspection itself usually takes a few hours depending on the size and complexity of the property. We turn the written report around within 24 hours of the inspection, so it doesn’t need to hold up your sale process.
How much does a 137B defects report cost in Melbourne?
Pricing depends on the size and location of the property. We quote a fixed price upfront with no hidden costs, so you know exactly what you’re paying before the inspection goes ahead.
Do I need a 137B report if my owner-builder insurance has lapsed?
Yes. If your warranty insurance has lapsed, was never taken out, or doesn’t cover the full scope of the work, you’ll generally need a section 137b owner builder report before you can sell.
What happens if I sell without a Section 137B owner builder report?
Selling without the required report where one applies can delay or unwind a sale, and may leave you open to a claim from the purchaser later if defects are discovered after settlement. It’s a legal disclosure requirement, not an optional extra.
Can a buyer request their own 137B inspection?
Yes. While the obligation to provide the report sits with the owner-builder selling the property, a purchaser can also arrange an independent inspection for their own peace of mind before signing.
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