If you’ve built your own home or you’ve modified your home yourself in recent years. You may find that when it comes time to sell your property. You’re being asked for an Owner Builder Defects Report. Not sure what this is or how to get one? Don’t worry, we have all of the information you need right here.
What is an owner builder?
You will qualify as an owner builder if you are going to be using your own hands to build your property or reconstruct or extend your home. You will also be classed as a building owner if you are planning to manage a team of sub-contractors to physically do the work. Even if you are a trained builder using your own company to build your home. You will class as an owner builder. It’s not a question of having the skills to carry out the work, but of accepting the responsibility that you are liable for the work done.
An owner builder’s responsibilities
As an owner builder, you will need to ensure you are following the law and local council legislation. This includes getting planning permits. You will also be responsible for the health and safety of yourself and any subcontractors on site. Because of this, it is often a good idea to get some insurance.
Selling your home
If you are going to be selling your home within 6 years and 6 months of a building or extending your home. You will need to do 2 things to legally sell your home. First, you must get an owner-builder defects report. And secondly, if the work you carried out on your home exceeded $16,000. You will need to take out domestic building insurance. This insurance protects the buyer of your property in case your construction was to develop a fault. Domestic building insurance covers non-structural defects for 2 years and all other defects for 6 years. If a fault was to develop in the build after this time. The buyer would be liable for repairing the damage. If you are looking to buy a home, you should ensure the required documents are completing accurately.
What is an Owner Builder Defects Report?
An Owner Builder Defects Report is an inspection carried out by a professional and reputable building inspector. The inspector analyses all aspects of the construction and the workmanship to identify any faults. Problems or potential issues down the line. The inspector’s findings are presented in a report to the potential property buyers. The Owner Builder Defects Report is a very important document because it ensures that the property buyers are fully aware of the condition of the property. Before they buy it and accept full responsibility for any potential damages not covered by the domestic building insurance. The Owner Builder Defects Report is also crucial for the owner-builder because it absolves them of all responsibilities once the property is sold.
By Bob Gorman