Selling a property as an Owner Builder?May 27th, 2020 Uncategorized
When selling a property in Victoria, Vendors, are required to disclose whether any building work was performed on the property within the preceding 7 years. Additional disclosure requirements are to be satisfied where the homeowner rather than a registered builder undertakes building work.
An owner builder is defined by the Building Act 1993 (Vic), as a person who personally builds, alters, and extends a building or manages and organises for building works to be completed by another whose name is not listed on the relevant building permit. Owner builder projects include the construction/ alteration of pools, garages, sheds, decks, and fences.
When selling your owner built property within 6 years and 6 months of the completion date, the Contract of Sale must include;
- Domestic building Insurance: This is required to be obtained when the building works undertaken is valued at $16,000 or more.
- Defect Report: A defect report must be prepared by a registered building inspector, engineer or building surveyor to review the buildings compliance with relevant laws and regulations.
Note: Defect reports expire 6 months from the date of the report.