Defects inspection report (Vic owner-builder)
Vic Building Act s.137B mandatory defects report by a registered building practitioner, max 6 months old, for owner-builder sale within 6.5 years of completion.
Ask Chalkline about this →A defects inspection report in Victorian owner-builder law is the mandatory professional defects report prepared by a registered building practitioner, no more than 6 months old, for any owner-built dwelling sold within 6.5 years of completion. It is required under Building Act 1993 (Vic) s.137B. The report must be included in the Section 32 Vendor Statement alongside the Domestic Building Insurance (DBI) before the sale contract is executed. Failure to provide it (or providing an out-of-date one) is an offence under s.137B and may void the contract. Verified per Building Act 1993 (Vic) (2026-05-23).
When the defects report is required:
| Condition | Required? |
|---|---|
| Owner-built dwelling sold within 6.5 years of completion | Yes |
| Owner-built dwelling sold more than 6.5 years after completion | No (s.137B no longer applies) |
| Licensed-builder-built dwelling | No (s.137B doesn’t apply; QBCC-equivalent licensed warranty covers) |
| Vacant owner-built lot | Yes if any owner-built work was done |
The 6-month rule:
The report must be dated within 6 months of the contract execution. An older report is invalid; if the report is 5 months old, the owner-builder has 1 month to execute the contract or commission a new report.
This means an owner-builder considering selling within 6.5 years should commission the report within 6 months of the planned sale, not months earlier.
Who prepares the report:
| Practitioner | Eligibility |
|---|---|
| Registered building practitioner (under Building Act 1993 Vic) | Must hold current VBA registration; not lapsed or suspended |
| Specific qualifications (varies by VBA category) | Most common: registered building inspector category |
| Independent of the owner-builder | Must not have done the work or be related to the owner-builder |
What the report covers:
| Element | Detail |
|---|---|
| Identification | Address, lot description, owner-builder permit number |
| Inspection date | Within 6 months of contract |
| Inspector details | Practitioner number, signature, registration class |
| Defects identified | List of defects observed during the inspection |
| Defect classification | Major / minor / cosmetic per industry conventions |
| Photographs | Visual documentation of each defect |
| Recommendations | Rectification suggestions |
| Limitations | Scope of inspection (visible only, no destructive testing typically) |
The report’s role in the sale:
The report does NOT need to certify that the dwelling is defect-free. Its purpose is to:
- Document defects existing at the inspection date.
- Disclose them to the buyer before contract.
- Allow the buyer to make an informed decision about the purchase price and risk.
The owner-builder is not required to rectify the defects before sale (though rectification is often a price-negotiation point).
Vic on-sell package summary:
For a Vic owner-builder sale within 6.5 years, the buyer receives:
| Document | Source |
|---|---|
| Section 32 Vendor Statement (mandatory for all Vic sales) | Vendor’s conveyancer |
| Title search | Land Use Victoria |
| Defects inspection report (this) | Registered building practitioner |
| Domestic Building Insurance (DBI) | VMIA via the builder’s distributor |
| Owner-builder declaration | Vendor |
The DBI is the insurance back-up; the defects report is the disclosure.
Cost and timeline (typical 2026):
| Service | Cost (ex-GST) | Time |
|---|---|---|
| Defects inspection | $800-$2,500 (single dwelling) | 2-4 weeks from booking |
| Larger dwelling or complex site | $2,500-$5,000 | 3-6 weeks |
| DBI policy | $1,000-$3,000 (depending on age, value) | 2-4 weeks |
| Total on-sell preparation | $1,800-$7,500 | 6-8 weeks typical |
Common defects in the report:
When the report identifies defects, they typically fall into:
- Wet area waterproofing: shower bases, balcony membranes, leaks.
- Roof penetrations: skylight, sarking, downpipe seals.
- Structural cracking: foundation, wall, render.
- Termite ingress: building damage, ongoing risk.
- Smoke alarm compliance: missing, mis-located, or non-interconnected.
- Pool safety: barrier, fencing, gate compliance.
- Electrical: visible non-compliance.
The owner-builder can choose to rectify before sale or disclose without rectification (typically negotiated as a price reduction).
Common defects in the disclosure process:
| Process defect | Consequence |
|---|---|
| Report > 6 months old at contract | Defective; void the contract |
| Report prepared by non-registered inspector | Defective |
| Report not in Section 32 | Section 32 incomplete; buyer can void |
| DBI lapsed | Same; void grounds |
| Owner-builder sells without going through the full s.137B package | Offence under s.137B; pecuniary penalty under VBA |
Cross-state equivalents:
| State | Equivalent disclosure |
|---|---|
| VIC | Defects inspection report + DBI under Building Act 1993 s.137B (this) |
| NSW | Consumer warning under HBA s.95 (no report required) |
| QLD | Written disclosure notice under Building Act 1975 |
| WA, SA, TAS, NT, ACT | State-specific |
Builder takeaway:
- For Vic owner-builders selling within 6.5 years, the defects inspection report is mandatory.
- Commission the report 6-8 weeks before the planned sale; allow time for re-inspection if defects need rectification.
- The DBI policy is the insurance back-up; arrange both together.
- Engage a Vic-experienced conveyancer; the Section 32 package is technical.
Also known as: s.137B report; pre-sale defects report; owner-builder defects report (Vic); building inspection report (Vic); registered practitioner’s report.
Category: Contracts & commercial.
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Last updated: 2026-05-23. Verified: 2026-05-23. Quarterly review for currency.