If you’ve made changes to your property without a registered builder and a building permit, you might be considered an owner-builder. And if you’re selling within 6 years and 6 months of completing those works, you’ll likely need a Section 137B defects report. This report, which must be dated within 6 months of the contract date, outlines any defects in the works carried out.

What Is an Owner-Builder?

An owner-builder is someone who undertakes building or renovation work without engaging a registered builder and without having obtained a building permit for the project.

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When Is a Section 137B Report Required?

You’ll need a Section 137B defects report if:
✅ You carried out building or renovation work with or without a building permit.
✅ A builder carried out building or renovation work without a building permit.
✅ You’re selling the property within 6 years and 6 months of completing the works.
✅ The project involved multiple trades (or should have involved multiple trades) working together—even if a single handyman completed all the work.

Single-Trade Exemptions – Read On for the Details

Not all building work requires a Section 137B report. Certain single-trade jobs are exempt, but only if they were completed by one trade and did not form part of a larger renovation or maintenance project.

Exempt Single-Trade Jobs (No 137B Report Required)

If any of the below trades were involved, and the work was not part of a larger renovation or maintenance project, then it may be exempt.

Electrical work (e.g. switchboard upgrades, rewiring)
Plumbing (e.g. installing hot water systems, sanitary fittings)
Tiling (e.g. retiling a bathroom or balcony)
Glazing (e.g. replacing glass, installing shower screens but excluding full replacement which affects the original window opening)
Painting (interior or exterior)
Plastering (e.g. repairing walls or ceilings)
Flooring (e.g. laying carpet or vinyl)
External fixtures (e.g. awnings, insect screens, security screens, balustrades)

Non-Exempt Single-Trade Jobs (137B Report Required If No Permit Was Obtained)

If any of the below trades were involved, then it cannot be exempt even if it did not form part of a larger renovation or maintenance project:

Carpentry (e.g. new decking, pergolas, structural framing)
Bricklaying (e.g. new walls, fences, extensions)
Roofing (major repairs or re-roofing)
Concreting (e.g. driveways, slabs, footings)
Stumping/Re-blocking (foundation works)

If your work combined multiple trades (e.g., plumbing, tiling, electrical) or a single tradesperson (such as a handyman) performed work that typically requires multiple trades, it is not exempt and requires a Section 137B report.

What About Insurance?

If the total cost of the work exceeds $16,000, domestic building insurance (DBI) may also be required before selling. The insurance requirement depends on the nature of the work:

Structural Works: If the work involved structural changes (e.g. new extensions, decking, major renovations), insurance must cover the property for 6 years.
Non-Structural Works: For non-structural changes (e.g. painting, retiling, new cabinetry), insurance is only required for 2 years.

Examples of When a Section 137B Report Is Required

✔ Converting a wardrobe into an ensuite (multiple trades: plumber, tiler, electrician, waterproofing)
✔ Building a new deck (without a permit)
✔ Major renovations (e.g. new kitchen, flooring, rewiring, heating system completed as one project)
✔ Refurbishing a property after a break-in (if multiple trades were involved in repairs)
✔ Adding an extension (even if a registered builder completed the work, a report is needed if no permit was obtained)

Examples of When a Section 137B Report Is NOT Required

✘ Standalone single-trade jobs (e.g. repainting, rewiring, plumbing work)
✘ Replacing carpet or a hot water system
✘ Re-tiling a balcony or repainting walls (if completed separately and not part of a larger project)
✘ Small, decorative upgrades (e.g. installing curtains, replacing flyscreens)

If the work was done over separate periods and not as part of a single project, a Section 137B report may not be required. However, when in doubt, it’s best to seek professional advice from a conveyancer.

Key Takeaways

No Building Permit? A Section 137B defects report is likely required.
Multiple Trades? Even if one person did the work, if it requires skills from multiple trades, it’s treated as a multiple-trade job.
Single-Trade Exemptions? Some trades (like electrical, plumbing, tiling, painting) are exempt, while others (like carpentry, bricklaying, roofing) are not.
Report Must Be Recent? The defects report must be dated within 6 months of the contract date.
Insurance? Structural works require 6-year insurance, while non-structural works require 2-year insurance if costs exceed $16,000.

If you’re unsure whether your works require a Section 137B report, it’s best to check with a conveyancer before selling.

Disclaimer:

This article provides general information only. If your works exceed $16,000, you may also need domestic building insurance, which is beyond the scope of this article. Always check with a legal or building professional to ensure compliance.