What is the difference between a Section 137B Owner Builder report and a Pre-purchase Inspection Report?

When it comes to a Section 137B Owner Builder Report in Geelong and a Pre-purchase Inspection, both involve assessing elements of a property that is intended to be sold, however the reports serve different purposes, and the inspections typically have very different scopes.

There are many misconceptions and often questions surrounding these two types of reports. To help clarify the differences and provide better understanding, we’ve prepared an overview below.

137B Owner Builder Reports

1. Purpose: If selling a property that has had building work completed by an Owner Builder, Victorian law requires a 137B Report to be attached to the Section 32 Contract of Sale. This report ensures compliance with building regulations and helps protect both the vendor and potential buyers. These reports highlight any defects in the construction, giving the vendor and their legal team the opportunity to address them before the sale, and provide transparency for the purchaser.
2. Requirement: A 137B Report is mandatory in Victoria for Owner Builders selling the property within 6.5 years of completing building work.
3. Focus: Under Section 137B of the Building Act 1993, a 137B Report ensures that:
   • 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.
     A 137B Report is NOT a certificate of compliance or building approval. 
4. Scope of inspection: The scope of the inspection is determined by the Owner Builder based on any building work they have carried out in the last 6.5 years.When completing an inspection, we rely solely upon the list of building work which the vendor specifies, and do not assess items beyond what has been specified. Other defects/non-compliances may exist but are NOT assessed and DO NOT form part of our report. Our 137B Owner Builder inspections are non-invasive and visual in nature. We do not use specialised tools or equipment; our focus is on identifying visible defects only.
5. Who can complete them?: The Owner Builder work needs to be inspected and reported on by a “prescribed building practitioner”. Under s.137B(7) of the Building Act a “prescribed practitioner” is;
   • (a) an architect registered under the Architects Act 1991; or
   • (b) a building surveyor, building inspector or an engineer registered under Part 11; or|
   • (c) a person recognised by the Minister under section 28 of the House Contracts Guarantee Act 1987 by order in force immediately before the commencement of section 166 of the Domestic Building Contracts Act 1995.

Registered Builders (DB-U and DB-L) are NOT authorised to complete these inspections and reports under The Building Act 1993.

 

Pre-Purchase Building and Pest Inspection Reports

1. Purpose: To assess and outline the overall condition of the property, identify potential issues and help the buyer make an informed purchase decision.
2. Requirement: Pre-purchase building inspections are optional for potential buyers, although it’s highly recommended for a thorough assessment of the property before purchase.
3. Focus: Broad, encompassing structural, plumbing, electrical, pest, and other aspects.
4. Scope of inspection: Encompasses all aspects of the property, including any Owner Builder work that has been completed. It may include the roof cavity, subfloor, external structures and is more detailed and invasive than a 137B Report.
5. Who can complete them?: There are no specific qualifications required by law for a pre-purchase inspection; however it is important to do your research to find someone reputable. We highly recommend that the individual completing the inspection is a Registered Building Practitioner.

Manse Group does not complete pre-purchase building inspections, however may be able to provide a recommendation, simply speak to our friendly team.

 

We understand that selling a property can be a busy and stressful time, and that many are unaware that a 137B Owner Builder report is required until being advised by their conveyancer as they get to the pointy end of selling their property. We strive to make the process transparent and straightforward. We provide friendly service, quick turnaround times for inspections, timely issuing of reports and all inspections and 137B Reports completed by a Registered Building Inspector.

It is not uncommon for questions to be asked by vendors, purchasers, conveyancers and real estate agents about the defects listed (or not listed) in a 137B Owner Builder Report compared to a Pre-purchase Inspection report. Ultimately the thoroughness of the individual completing the inspection can also vary significantly, typically due to qualifications and experience. If you’re unsure about defects listed in either 137B or Pre-purchase report, we recommend you speak with your conveyancer/legal representative for further advice.

 

Looking to sell your property and need a 137B Owner Builder Report in the Geelong and surrounding area? Our friendly team would be pleased to discuss your needs, get in touch.