Selling an owner-built home: when is an inspection report needed?

Building your own home, or a major part of it, as an owner-builder is a big undertaking. Selling it later brings a second set of questions, because a buyer is taking on work that was not carried out by a registered builder under a standard building contract. Victoria can place extra obligations on owner-builders who sell, and one of those obligations may be an inspection report prepared before the sale.

This guide explains when a report may be needed, who confirms what applies, what the report looks at and how to get the timing right. It sits under our pillar on what owner-builders in Victoria should know about inspections and reports, which covers the wider picture of inspections during and after a build.

Why does selling an owner-built home come with extra steps?

When a registered builder builds a home under a contract, the owner has a contract, a permit trail and a defects process to lean on. When you build as an owner-builder, you take on the builder's role yourself. You hold the building permit, you arrange the mandatory inspections through the relevant building surveyor, and you remain responsible for the work.

A future buyer inherits that work without having been part of it. The obligations on owner-builders who sell are generally there so that a buyer has some independent information about the condition of the home, and so that certain matters are disclosed. An inspection report is one of the ways that information is provided. Other obligations may apply as well, and your conveyancer or lawyer is the right person to walk you through them.

When may an inspection report be needed?

Owner-builders who sell a home they built may need an inspection report before the sale. Whether that applies to you can depend on things such as how long ago the work was completed, what kind of work it was and the value of it. The requirements can change, and we do not restate them here because a guide cannot keep up with every revision.

Instead, two checks settle the question for your sale:

1. Check the current owner-builder requirements with the Victorian building regulator. Its guidance may set out when a report is needed, who can prepare it and what it must cover.
2. Ask your conveyancer or lawyer how those requirements apply to your sale, including what goes into the vendor's statement.

Once you know what the report needs to cover and who may prepare it, tell us about the property and your timing. We confirm whether we can help before anything is booked. If the requirements call for a practitioner we are not, we will say so and suggest the kind of practitioner to look for.

Who checks what applies to your sale?

Three people, each with a different job:

• The Victorian building regulator publishes the current owner-builder requirements, including those that apply at sale.
• Your conveyancer or lawyer applies them to your contract and the vendor's statement, and tells you what must be disclosed and when.
• We carry out the inspection and prepare the report, where the requirements allow us to and once the scope is confirmed.

Keep those roles separate in your mind. We can explain what a report describes and how an inspection works, but we cannot tell you whether a report is legally required for your sale or what your contract must say. That is legal advice, and it belongs with your conveyancer or lawyer.

What does the report look at?

The report is based on a visual, non-invasive inspection of the accessible areas of the home, inside and out, including the roof space and subfloor where there is safe and reasonable access. We record visible defects, unfinished work and items worth a closer look, with photos to support key observations. The report is organised area by area and includes a clear list of anything that could not be inspected, and why.

Where the report is for a sale, the scope follows what the current requirements say the report must cover. That is why we ask you to find out first. A report that covers the wrong things, or is prepared by the wrong kind of practitioner, is no use to you on the day contracts are exchanged.

It helps to see the inspection through a buyer's eyes. Our guide on what a pre-purchase inspection covers describes what buyers look for, and the same areas, roof, subfloor, wet areas, cracking, water entry and timber pest conditions, come up in an owner-builder inspection before a sale.

What does the report not do?

A report describes the visible condition of the home at the time of the inspection. It is not a certificate of compliance, an approval, a warranty or a structural engineering assessment. It does not confirm that your work complies with the building permit; compliance is dealt with through the permit process and the relevant building surveyor, and the mandatory inspections carried out for the permit are separate from any independent inspection you commission from us.

It cannot see work that is concealed inside walls, under floors or in areas that are unsafe to reach, and it cannot rule out a buyer finding something later. If an observation suggests a structural concern, the report can recommend a structural engineer.

The report is also not legal advice about selling, and it does not replace the other disclosures your conveyancer or lawyer may tell you about. Think of it as one document in a set, alongside your building permit, plans, inspection records and certificates from the build. If that set has gaps, our property paperwork service can help you work out what you have, what is missing and who might hold it.

When should you start, and what should you have ready?

Start before you list, not after an offer arrives. A sale can move quickly once a buyer is interested, and a report prepared in a rush has less value to everyone. A sensible order is:

1. Read the Victorian building regulator's current owner-builder guidance.
2. Talk to your conveyancer or lawyer about your sale and the vendor's statement.
3. Tell us what the report needs to cover, when the work was done and when you plan to list.
4. Have your building permit, plans, inspection records and any certificates from the build ready to share.
5. Make sure every room, the roof space, the subfloor, outbuildings and outdoor areas can be reached on the day.
6. Tell us about any work that is still unfinished, or anything you are unsure about, so it is recorded rather than discovered.

If the work was done under a permit, it also helps to confirm the permit paperwork is complete. Our pillar on which permits building work needs in Victoria explains the difference between planning and building permits and who issues each.

Tell us about your property. We will help with the next step: call or WhatsApp 0406 194 163, or send an enquiry and we will come back to you.

Sources and authorities

These public sources set out the requirements this guide refers to. They are the places to confirm what applies to your sale; we help you understand and prepare for them.

• Building and Plumbing Commission: what applies when an owner-builder sells, including domestic building insurance and the defects inspection report.
• Consumer Affairs Victoria: the rights and obligations of owner builders, including selling an owner-built house.