x

Fact Sheet: 137B Owner Builder Reports

What you need to know as an Owner Builder

When selling a property that you carried our building works (including building and/or renovating) as an Owner Builder, Victorian law requires a 137B Report to be attached to the Section 32 contract of sale. This report ensures compliance with the Building Act and helps protect both you and potential buyers.

At Manse Group, we aim to make the process transparent and straightforward. Below is an overview of the 137B Report process, common issues identified, and how you can address any concerns.

Why is a 137B Report required?

The 137B Report is a legal requirement under Section 137B of the Building Act 1993. It identifies defects similar to items that a day-to-day builder deals with including:

  • The property is built or renovated in a proper and workmanlike manner.
  • The work is fit for purpose.
  • Construction complies with all applicable laws and legal requirements.

This report highlights any defects in the construction, giving you and your lawyer/solicitor/conveyancer the opportunity to decide how to best protect you.

 

Defects: A facts-based approach

Our Inspectors have a statutory duty to provide an independent and factual assessment of the building work. Defects are identified based on elements outlined in the Domestic Building Contracts Act 1995 and the Building Act 1993, section 137C which are the vendor warranties.

While defects can sometimes be unexpected or frustrating, identifying them early helps mitigate future risks, including legal disputes or worse yet, possible harm to future building users.

 

Common Defects Identified

Below are common issues frequently flagged in 137B Reports:

General Defects:

  • Cracking in walls or surfaces.
  • Work not completed according to the Building Permit.
  • Incomplete or unfinished construction.
  • Siting requirements.
  • Inadequate light and ventilation. 

Bathrooms, Ensuites, Toilets & Laundries:

  • Missing or discontinuous waterstops.
  • Poorly sealed vanity, wall, floor, toilet and bath junctions.
  • Inadequate fall in showers or niches leading to water pooling.
  • Leaks to waste pipes and unsealed penetrations through cabinetry.
  • Use of inappropriate materials (e.g., timber or laminate flooring in wet areas).
  • Missing lift-off hinges for toilet doors (where required).

Kitchens:

  • Poor or improper installation of finishes and fittings.

Stairs:

  • Inconsistent and/or out of tolerance riser (step) and going (tread) dimensions.
  • Non-compliant balustrade heights.
  • Non-compliant handrail heights and/or locations.
  • Loose wire balustrade.

Decks, Pergolas & Verandas:

  • Inadequate subfloor ventilation.
  • Blocked weep holes.
  • Built too close to boundary fences.
  • Improper attachment to the house.
  • Non-compliant balustrades.

Exterior:

  • Incorrect fixings or fastenings.
  • Missing or inadequate door and window flashings.
  • Air-conditioner/heater drains discharging near building foundations.
  • Missing safety indicators on glazing.

Sheds & Fences:

  • Non-compliance with Building Permit conditions.
  • Non-compliance with Building Regulations.

 

What if I’m unhappy with the report?

If you’re dissatisfied with the findings, here are some steps you can take:

  1. Contact Us: We’re happy to explain why certain items were included in the report and provide clarification.
  2. Avoid Emotional Reactions: Please refrain from taking frustrations out on our team – they are fulfilling their statutory duty.
  3. Address the Defects: Consider rectifying the issues identified and requesting a re-inspection (This may incur an additional fee).
  4. Speak to Relevant Professionals: Consult the/a Building Surveyor or trades who completed the work for further guidance, where applicable.
  5. Speak to your legal representative: Consult with your lawyer/solicitor/conveyancer for further advice.

 

Additional notes/considerations

Pools: Manse Group do not inspect pools or pool safety barriers. Homeowners must comply with Part 9 of the Building Regulations 2018 for pool safety.

Scope: The scope of the inspection is determined by the Owner Builder based on any works they have carried out in the last 6.5 years, and we rely upon this when carrying out the inspection.

Our Process: Reports are conducted by highly experienced Registered Building Inspectors. They are fact-based and independent, not subjective opinions.

Compliance Focus: These reports focus on compliance and workmanship. Purchasers will typically engage a separate company to complete pre-purchase inspections who generally have a wider scope and will comment on different aspects.

Materials: Second-hand materials or reused components often require special attention to ensure they are fit for purpose, and we rely on the Owner Builder to inform us if any have been used.

Our Goal: We appreciate quality work and aim to ensure compliance and for the safety of future occupants and to protect you in the long run. Our systems are in place to ensure efficient turn around times so your team can generate the section 32 and sell you property.

 

We hope this fact sheet offers some insight into our process so you can be more prepared on what the 137B process entails.

 

Please contact us if you have any questions or need further clarification.

Can we help make your build a better one?Contact Us
Google Rating
4.9
Based on 118 reviews
js_loader
Google Rating
4.9
Based on 118 reviews
js_loader