Owner-Builder Obligations When Selling Your Home in Victoria

with Claudia Falciglia, Property Lawyer

Selling your home after doing some renovations sounds straightforward. But if you organised the work yourself, even just one trade, there’s a good chance you’re classified as an ‘owner-builder’ under Victorian law. 

That classification comes with legal obligations you must meet before you can sell.

Speak to our property lawyer to get a clearer picture of owner-builder obligations in Geelong, particularly as there are varying requirements for sales of residential and commercial properties, as well as certain exceptions to the obligations.

What is an owner-builder?

According to the Building & Plumbing Commission (BPC, formerly the Victorian Building Authority), the term ‘owner-builder’ refers to ‘someone who takes responsibility for domestic building work carried out on their own land’.

That usually means you did the work yourself, or you organised separate trades yourself (a carpenter here, a tiler there) rather than signing a contract with one registered builder who supervised everything, obtained the permits, and signed off on the work.

According to the Building Act 1993 (VIC) – section 137B, the work that defines an owner-builder covers not just full builds, but alterations and additions to existing structures. That can include things like building a deck, renovating a kitchen, installing a fence, or adding a shed. 

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What are an owner-builder’s obligations when selling a property?

If you’re selling within the prescribed period – six years and six months from the date the works were completed — section 137B of the Building Act 1993 requires you to include three things in your sale documents.

The owner-builder report

You must obtain an owner-builder report from a ‘prescribed building practitioner’. This includes registered architects, building surveyors or endorsed building engineers. Think of it as an independent inspection of the works you carried out. The inspector inspects the property, documents the work done, and notes defects (if any).

The report must be less than six months old at the time the contract of sale is signed. Most registered building inspectors are familiar with this type of report and carry them out regularly.

Domestic building insurance

If the value of your building works exceeds $16,000, you are also required to obtain domestic building insurance (DBI) and provide evidence of it to the purchaser before they sign the contract.

This insurance protects the purchaser if defects emerge and you, as the owner-builder, are unable to fix them because you have died, become insolvent, or disappeared.

If your works came in under $16,000, you are still required to provide the owner-builder report and the statutory warranties below. The insurance obligation does not apply.

Statutory warranties

The third obligation is a set of statutory warranties, set out at section 137C of the Building Act 1993 (VIC). These are standard warranties that confirm the works were carried out properly and in accordance with the relevant laws and standards.

The good news is that these warranties are ordinarily included in the general conditions of the contract of sale. Your property lawyer or conveyancer will typically handle this as part of preparing your sale documents, but it’s worth being aware of, so you can confirm it has been covered.

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What happens if an owner-builder does not comply?

For the vendor: failing to include the required documents in the sale contract is an offence under the Building Act 1993 (Vic). The penalty can be up to 100 penalty units, which at current rates (as of April 2026) is around $20,351.

For the purchaser: non-compliance gives them the right to void the contract at any time before settlement, even after the contract has gone unconditional. That means a sale that looked locked in can collapse at the last minute, with the purchaser entitled to a full refund of their deposit.

Attempting to hide owner-builder works is unlikely to work. Purchasers’ lawyers routinely check listing photos, council records, and building permits when reviewing a contract. If there’s a freshly renovated kitchen in the marketing photos but no building permits in the section 32 statement, questions will be asked!

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How do you know if you’re an owner-builder?

This is where many vendors get caught out, because the classification is broader than most people expect.

A good starting point is to ask yourself: did I sign a contract with a single registered builder who obtained the permits and supervised all the work? If yes, you are probably not an owner-builder for that work.

If you organised trades separately, managed the project yourself, or had a friend or family member do part of the work, even something as modest as erecting a fence, you may well be captured by these provisions.

If you’ve recently renovated and are unsure if you qualify as an owner-builder, contact Whyte, Just & Moore. We’ll give you a straight answer before it becomes a problem.

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Buying a renovated property? Check for owner-builder works

If you’re buying a property and you notice the home has been renovated, your property lawyer should check the section 32 statement carefully. If there are no building permits, no owner-builder report, and no domestic building insurance where the works appear to exceed $16,000, that’s a red flag.

Non-compliance gives the purchaser the right to void the contract before settlement. Your lawyer can identify these issues before you sign and advise you on what to do next.

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Speak to a property lawyer in Geelong before you list

Owner-builder obligations catch people off guard more often than you’d think. A kitchen renovation, a new pergola, a pool fence organised through a local tradie. Any of these can bring section 137B into play.

At Whyte, Just & Moore, our property law team helps Geelong vendors and purchasers navigate these issues. Our firm has been helping people through property transactions in this region since 1877, and we know how quickly a missed obligation can complicate a sale.

If you’re planning to sell or you’re buying a property and want someone to review the contract, get in touch with our team in Geelong for straightforward, practical advice.

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FAQs about owner-builder obligations in Geelong

How long do owner-builder obligations last when selling? 

Owner-builder obligations when selling apply for 6 years and 6 months from the date the works were completed.

What documents does an owner-builder need to provide when selling? 

An owner-builder selling within the prescribed period must provide: an owner-builder report (no more than six months old), domestic building insurance if the works exceeded $16,000, and statutory warranties as set out in section 137C of the Building Act 1993 (Vic).

Do I still need an owner-builder report if the works were under $16,000? 

Yes. The owner-builder report and statutory warranties are required regardless of the value of the works. Domestic building insurance is only required if the works exceeded $16,000.

How do I know if my renovation makes me an owner-builder? 

If you organised trades separately, managed the work yourself, or had someone other than a registered builder supervise and sign off on the work, you may be classified as an owner-builder. Speak to a property lawyer in Geelong to confirm your obligations.