When would I need an Owner Builder Defects Report included in my Section 32 Statement?

One of the areas requiring disclosure in your Section 32 Statement is any building works on renovations in the previous seven years. There are various requirements under both the Sale of Land Act and the Building Act, and failure to comply with this legislation can put your sale in jeopardy. This includes disclosing any improvements, renovations and additions, and whether or not a building permit was issued. When it comes to Owner Builder work, the requirements are still relevant if the work was completed by a registered builder without obtaining a permit.

An Owner Builder Defect Report (also known as a Section 137B Report) may be required to comply with your obligations, and you will need to engage a qualified practitioner to attend the property, inspect the works and compile a report. This report then forms part of your Section 32 statement. This report is only required for the sale of your property, and needs to be less than six months old when the contract is signed, so unfortunately it’s not something many vendors would already have on hand. There are also certain insurance requirements, depending on the value of the building works.

Every sale is different and the legislation is complex – but we’ll try to simplify this for you and let you know exactly what you need to provide.