Selling a property in Victoria with recent renovations requires more than just a fresh coat of paint. For owner-builders, Section 137B of the Building Act 1993 creates significant legal hurdles that both practitioners and clients must navigate carefully.
What is the s137B Obligation? If a property is sold within six years and six months of “completing” building work (which includes extensions or structural renovations), the owner-builder must provide a Section 137B condition report. This report, prepared by a licensed building practitioner, must be less than six months old and included in the Section 32 Statement. Crucially, if the work exceeds $16,000, Domestic Building Insurance (DBI) is also mandatory.
Practitioners vs. Clients For practitioners, the risk is high: failing to ensure these documents are in place can make a contract voidable by the purchaser at any time before settlement. For clients, late discovery often delays settlements or leads to costly last-minute insurance applications.
Proactive disclosure is key. Whether you are a legal practitioner protecting a client’s sale or a homeowner preparing to list, understanding these statutory warranties is essential. For a comprehensive guide on managing these requirements and ensuring your transaction remains secure, refer to the detailed resources at Owner Builder Obligations in Victoria . Stay compliant to ensure a smooth transition from owner-builder to successful vendor.