Do I need a 137B report for the work I’ve completed on my home?
In Victoria, if you are selling a property that has had building works completed within the last 6.5 years, a 137B Report is required by law when there is no Registered Building Practitioner responsible for the work.
The monetary value of the work completed does not determine if a report is or is not required. What matters is the type of work that was completed. Even if licenced or professional trades have been used, when building work has been completed and there is no Registered Building Practitioner, a 137B report is a legal requirement.
There is often uncertainty about what is classified as ‘building work’ which therefore requires a 137B Owner Building report.
Section 137B(2) of the Building Act references the word “constructs” and s.137B(7) goes on to define “construct” as per the below;
“construct in relation to a building, means—
(a) build, rebuild, erect or re-erect the building; or
(b) make alterations to the building; or
(c) enlarge or extend the building; or
(d) cause any other person to do anything referred to in paragraph (a), (b) or (c) in relation to the building; or
(e) manage or arrange the doing of anything referred to in paragraph (a), (b) or (c) in relation to the building;”
It is important to note, that the word ‘alteration’ is quite broad, so it’s critical that homeowners are transparent in the disclosing the information and works completed.
Section 137C Warranties for purposes of homes under section 137B notes the below:
(1) The following warranties are part of every contract to which section 137B applies which relates to the sale of a home —
(a) the vendor warrants that all domestic building work carried out in relation to the construction by or on behalf of the vendor of the home was carried out in a proper and workmanlike manner; and
(b) the vendor warrants that all materials used in that domestic building work were good and suitable for the purpose for which they were used and that, unless otherwise stated in the contract, those materials were new; and
(c) the vendor warrants that that domestic building work was carried out in accordance with all laws and legal requirements, including, without limiting the generality of this warranty, this Act and the regulations.
(2) In addition to the purchaser under a contract to which section 137B applies, any person who is a successor in title to the purchaser may take proceedings for a breach of the warranties listed in subsection (1) as if that person were a party to the contract.
(3) A provision of an agreement or instrument that purports to restrict or remove the right of a person to take proceedings for a breach of any of the warranties listed in subsection (1) is void to the extent that it applies to a breach other than a breach that was known or ought reasonably to have been known to the person to exist at the time the agreement or instrument was executed.
We always recommend seeking advice from a legal professional or conveyancer on what work requires assessment. This way homeowners have peace of mind knowing they have fulfilled their legal obligations regarding their Section 32 documentation.
It is also important to note that regardless of whether a building permit has/has not been issued or is/isn’t required, a 137B report may still be necessary if the work completed meets the Building Act’s definition.
If you have completed work on your property within the past 6.5 years, Manse Group can complete an inspection and 137B report for your property. Get in touch with our friendly team to arrange your s.137B Owner Builder Report today.
