Owner Builder Works on Residential Properties

When signing a contract to purchase a residential property, Purchasers should be aware of any works that may have been conducted by a Vendor in the last 7 years to a building or structure. This includes cosmetic works.

If these works look like they have exceeded $16,000, then the Vendor is obligated to provide you with permits. The permits required are an Occupancy Permit, Certificate of Final Inspection, condition report and insurance. 

There are various trigger dates that come into play as to when either some or all of the above apply. For example:

–           If works are completed by a registered builder under a Major Domestic Building Contract (MDBC) and the works exceed $16,000 then Domestic Building Insurance applies.

–           If works are completed by a registered builder not under a MDBC then Owner Building Insurance applies for work exceeding $16,000 in which there were structural works in the last 6 years and/or non-structural works in the last 2 years.

–           If works are completed by a non-licensed person (such as trades not covered by a MDBC or the Vendor themselves) then a condition report is required not less than 6-months-old. Additionally, Owner Building Insurance applies if the works exceed $16,000 and there were structural works in the last 6 years and/or non-structural works in the last 2 years.

If you are purchasing a residential property, we recommend speaking with our team in order to ensure that any Owner Builder Works are treated appropriately and that you have obtained the correct documentation from the Vendor.