16/01/2025
Its’s the start of a new year and I hope you are all well and looking forward to the year ahead.
I just thought I would add this owner builder information sheet, which is a basic reminder as to why an owner builder 137b defect report is important to the conveyancer/ lawyer, vendor selling the property, real estate agent as well as the buyer.
If the owner builder has performed any construction works within the last 6.5 years prior to the sale of their home, a 137b report is required to disclosure to the buyer what they are buying. If a 137b report has not been disclosed to the buyer prior to the Contact of Sale being signed, the buyer is legally entitled to cancel the Contract of Sale at any time right up until settlement. The buyer is able to cancel the contract with no penalties and receives their deposit back. The vendor is left with still paying the agent, conveyancers fees, starting all over again and still requires an owner builder 137b report.
If the Contract of Sale is cancelled, it can cause a massive amount of stress to the vendor and also potentially exposes the conveyancer/ lawyer and real estate agent to potential legal action.
I had to do several re-inspections last year for clients who were not aware of this inspection and the sale of the property did not proceed all because a 137b report was not included within the section 32.
There is a lot of confusion and even misinformation about these reports, so I am more than happy to answer questions and provide advice on whether you, or your client requires a 137b owner builder report if you are unsure.
ASTA Building Consultants specialise in 137B Owner Builder reports in Melbourne, Vic