Quick answer
You may need a Section 137B owner-builder defects inspection report even where no building permit was obtained. But no permit does not automatically mean a report is required.
The answer depends on what work was done, who was legally responsible for it, whether a building permit was required, when the work was completed, and which owner-builder sale provisions apply.
Work that was legally exempt from a permit is different from work that required a permit but was carried out without one.
1. No building permit does not automatically mean no Section 137B
Consider a homeowner who renovates a kitchen and bathroom before selling. They say: “We didn’t touch the structure and nobody obtained a permit. Why is my conveyancer asking about a 137B report?”
Three separate questions must be considered:
- Did the work legally require a building permit?
- Was the homeowner acting as an owner-builder, or was a registered builder responsible for the work?
- Does the proposed sale trigger Section 137B requirements under the applicable law?
The absence of a building permit does not settle all three. Equally, not every cosmetic renovation triggers a Section 137B report.
2. Which renovations may be exempt from a building permit?
Some non-structural alterations may be exempt from a building permit under the Victorian building regulations. Examples that warrant an exemption check include replacing cabinetry, repainting, replacing floor coverings and certain minor internal alterations.
Whether an exemption applies depends on the actual scope and the regulatory conditions, not the label “cosmetic renovation”. A project described as a bathroom makeover may also involve changes to walls, floors, structural elements or other regulated work.
A renovation does not become permit-exempt because the owner or a tradesperson believed a permit was unnecessary. Where uncertain, get advice from a registered building surveyor or the relevant authority.
3. Could I be an owner-builder if licensed trades did the work?
Potentially. Homeowners sometimes engage a plumber, electrician, carpenter, waterproofer and tiler separately and manage the works themselves.
Using qualified tradespeople does not, by itself, show that a registered domestic builder took responsibility for the overall project. The contractual arrangements, supervision and the statutory definitions matter.
Ask who contracted for and coordinated the work, whether a registered builder accepted overall responsibility, and which building permits, contracts and certificates exist. More: Renovations done by licensed trades.
4. What if the work needed a permit but none was obtained?
This is different from a lawful exemption. Possible examples include structural wall alterations, extensions, framing changes and other work outside an exemption.
A Section 137B defects inspection is not retrospective building approval. An inspector can document visible defects and observable non-compliance within the agreed scope, but cannot issue a missing building permit, legalise unauthorised work, replace a Certificate of Final Inspection, or certify concealed structural conditions without a proper basis.
The owner may need separate advice from a building surveyor, engineer or other qualified practitioner. The conveyancer or solicitor should deal with the contract and disclosure consequences.
5. What about bathroom, kitchen and other renovations?
There is no universal answer based only on the room name.
| Example work | What should be checked? |
|---|---|
| Kitchen repainting | Whether this is only cosmetic work |
| Cabinet or benchtop replacement | Whether structural or otherwise regulated work was also done |
| Complete bathroom renovation | Actual scope, waterproofing, alterations and who was responsible |
| Wall removal | Whether the wall was load-bearing and which approvals were required |
| New ensuite | Structural, plumbing, waterproofing and permit considerations |
| Deck or pergola | Type, dimensions, structure, exemption criteria and who was responsible |
These are prompts for assessment, not automatic legal conclusions. Cost alone is not a Section 137B exemption test. Consumer Affairs Victoria says the defects report can be required regardless of the value of the owner-builder work.
6. How is the time period calculated?
Section 137B of the Building Act 1993 applies to a sale within the “prescribed period”. For domestic building work, the Act generally sets this at 6 years and 6 months after the completion date, which is the date the occupancy permit was issued or, if none, the date of the certificate of final inspection.
The Act uses different starting points when there is no such document. This is the situation most relevant to unpermitted work:
- If neither an occupancy permit nor a certificate of final inspection was issued or required, the period generally runs 7 years from the date of the building permit.
- If no building permit was required, it generally runs 6 years and 6 months from the certified date of commencement, a date the owner certifies by statutory declaration.
Current Building and Plumbing Commission guidance on selling an owner-built home refers to 6 years for the defects report. Because official wording differs, do not rely on one number as a blanket rule: your conveyancer or solicitor should confirm the applicable period and the legally relevant date for your work.
Useful dating evidence can include contracts, invoices, photographs, trade certificates and correspondence.
7. Does hiring licensed trades automatically exempt me?
No. Separate trade invoices may show who did particular tasks, but not necessarily who took overall building responsibility.
Relevant questions include whether a registered builder was engaged, whether a domestic building contract exists, who coordinated the works, who was named on any permit, and which trade certificates are available.
8. Checklist for conveyancers and solicitors
When a seller discloses renovations but no building permit, a structured intake can save repeated requests for documents:
- Get a specific scope of works, not just “kitchen and bathroom renovated”.
- Establish dates for each project and the supporting evidence.
- Identify who did the work and who managed it.
- Decide whether a permit was required or an exemption applied, with building advice where needed.
- Collect contracts, invoices, certificates, drawings and council or surveyor records.
- Assess any owner-builder sale, report, warranty, insurance and disclosure obligations.
- If a defects inspection is required, engage a registered practitioner and define the inspection scope clearly.
An inspector can assess observable building conditions; the conveyancer or solicitor remains responsible for legal advice about the transaction. More for practitioners: Section 137B for solicitors and conveyancers.
9. What if the contract is about to be signed?
Under Section 137B, the report must be obtained no more than 6 months before the contract is entered into, and a copy given to the buyer. A contract that does not comply is not automatically void, but the buyer may be able to avoid it before completion. The maximum penalty is 100 penalty units (about $20,910 at current rates).
Do not assume that supplying a report after signing fixes an earlier omission. Get transaction-specific legal advice. An inspection provider can help by reviewing the scope and arranging an inspection when appropriate.
10. Is a Section 137B report the same as insurance?
No. A defects inspection report records defects and signs of non-compliance observed within its scope. Owner-builder domestic building insurance (home warranty) deals with different risks under separate rules.
Victoria’s building insurance arrangements changed from 1 July 2026. Current Building and Plumbing Commission guidance refers to insurance for owner-builder projects over $20,000. Timing, transitional arrangements and the type of work matter, so do not assume one threshold or insurance rule applies to every past renovation.
A report does not provide insurance cover, and insurance does not authorise unapproved building work.
11. How we can help
Owner Builder Inspection Melbourne carries out Section 137B owner-builder defects inspections in Victoria: reviewing the scope, arranging the inspection and reporting the defects identified.
We can help organise the information needed to set the inspection scope, but we do not replace a building surveyor’s approval, an engineer’s certification, an insurer’s decision or your conveyancer’s legal advice.
12. Check your renovation before selling
Not sure whether the renovations may need a Section 137B report? Start by listing the work actually done, such as bathrooms, kitchens, laundries, roofing, flooring, decks, garages, pergolas or wall alterations.
The online check is preliminary and is not a legal determination.
Frequently asked questions
Can I sell a house in Victoria if renovations were done without a building permit?
Possibly. First establish whether a permit was legally required and whether any approval, compliance, reporting or disclosure issues remain. A Section 137B report alone cannot legalise unauthorised work.
Does every bathroom renovation require a Section 137B report?
No. It depends on the actual work, who was responsible for it, when it was completed and the applicable legal provisions. The room name alone does not decide it.
What if my renovations cost less than $20,000?
The $20,000 figure in current Building and Plumbing Commission guidance relates to owner-builder insurance, not to the defects report. Consumer Affairs Victoria says the defects report can be required regardless of the value of the work.
What if licensed trades completed all the work?
The overall contractual responsibility still matters. Using licensed trades does not by itself answer whether owner-builder sale obligations apply.
Can a 137B inspector approve work completed without a permit?
No. A defects inspection does not issue a building permit or any retrospective statutory approval.
What if the work was finished more than six years ago?
The Act generally uses 6 years and 6 months from the completion date, with different starting points where no occupancy permit or certificate of final inspection exists. Current Building and Plumbing Commission guidance refers to 6 years for the defects report. Ask your conveyancer or solicitor to confirm the period and the completion date for your work.
Can a Section 137B report be organised urgently?
Call or enquire with the property address, the renovation details and the date you need the report. Timing depends on the scope, location and access; no settlement outcome is guaranteed.
Sources (checked 10 October 2026): Building Act 1993 (Vic), s 137B, Building and Plumbing Commission — Selling an owner-built home, Consumer Affairs Victoria — Owner builders, and Victorian Department of Treasury and Finance — penalty units.
General information only, not legal advice. Each property’s work history and transaction must be assessed individually. Last reviewed: 10 October 2026.