Services

Wise Engineers

137B Owner Builder Reports

What is a 137B Report and why is it required?

A 137B Owner Builder Defects Report is required under Section 137B of the Building Act 1993 (VIC) whenever an owner-builder sells within 6 years and 6 months of completing works. The report must be prepared by a prescribed building practitioner such as a registered engineer, building surveyor, or registered architect.

The report must be prepared by a prescribed building practitioner — that is, a registered architect, registered building surveyor, or endorsed building engineer. It records any defects or incomplete items in the owner-builder works and must be included in the Section 32 vendor statement.

A 137B report is always required within this timeframe, regardless of the cost of the works. If the value of the works is over $16,000, the vendor must also obtain domestic building insurance, which can only be issued once a 137B report is completed. This ensures that purchasers are protected and fully informed, and it allows the sale to lawfully proceed.

Our Role

Wise Engineers provides independent, engineer-prepared reports that meet the requirements of Section 137B. We identify and document defects or incomplete works clearly and factually, giving vendors, conveyancers, and insurers the documentation they need to complete a compliant Section 32.

  • Independent inspection by an endorsed, registered engineer

  • Focus only on owner-builder works completed within 6 years 6 months

  • Defect schedule with supporting photographs

  • Accepted format for insurers, conveyancers, and purchasers

What the Report Covers

  • Identification of defects or incomplete items in the owner-builder works

  • Notes on second-hand materials, if present

  • Photographic record with clear descriptions, if deemed required

  • Confirmation that the inspection is visual and non-invasive

Not included: compliance certification, structural design, valuation, pest or asbestos inspection, flammable building materials, or invasive testing. If further investigation is needed, we will advise.

Timing and validity

A 137B report must be less than 6 months old at the time the contract of sale is signed. To avoid delays with insurance and settlement, vendors should arrange their report as early as possible in the sales process.

Process

  1. Booking and site access

  2. On-site inspection of the owner-builder works

  3. Report issued with photographs and defect schedule

  4. Vendor obtains domestic building insurance (if works exceed $16,000) and, with their conveyancer, ensures the report and insurance are included in the Section 32

Frequently asked questions

Do I always need a 137B report?
Yes. If owner-builder works were completed within 6 years 6 months, a 137B report is mandatory, no matter the cost of the works.

When is domestic building insurance required?
If the works are valued over $16,000, domestic building insurance is required. The 137B report must be completed first in order for the insurer to issue a policy.

Is this the same as a pre-purchase building and pest inspection?
No. A 137B report is not a general pre-purchase buidling inspection. It specifically identifies defects in owner-builder works for legal compliance. Purchasers may still arrange their own building and pest inspections separately.

Who can prepare a 137B report? Only a prescribed building practitioner:

  • Registered architect

  • Registered building surveyor

  • Endorsed building engineer

What documents should I have ready?
Copies of any building permits, occupancy permits, or certificates of final inspection relating to the owner-builder works. These assist in preparing a complete report for inclusion in the Section 32.

Service area

We service the Surf Coast, the Bellarine, the Greater Geelong Area, Lara, and even down to Lorne. For other areas, please contact us to discuss availability.

Contact Us

Address: Located at the start of the beautiful Great Ocean Road in Torquay VIC, 3228

Phone: 0428-074-067

Email: info@wiseengineers.com.au

At Wise Engineers Pty Ltd, we are dedicated to delivering engineering excellence with integrity and a personalised touch. Let us help you bring your vision to life.

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