Quick answer
If a Section 137B owner-builder defects inspection report was legally required but missing when you signed, obtaining a report before settlement may provide useful information, but it does not automatically cure an earlier failure to comply.
The buyer’s options depend on the law, the contract, the facts of the building work, the disclosure documents and the timing. Ask your conveyancer or property solicitor to review the contract promptly; a registered inspector can separately assess the owner-builder work.
The settlement date is approaching. The vendor says they can arrange an inspection now. The agent says it is only paperwork. The buyer wants to know whether the sale can proceed and what happens if the inspection finds defects.
This is not simply an administrative issue. The timing of owner-builder disclosure can matter as much as the contents of the eventual report.
1. Was a Section 137B report actually required?
First establish whether the work and the sale fell within Section 137B of the Building Act 1993 (Vic). A recent renovation does not, on its own, prove a report was required. Equally, a seller saying no building permit was obtained does not answer the question.
The conveyancer or solicitor should verify:
- What building work was carried out, and which parts of the property it affected.
- Whether the seller was responsible for the work as an owner-builder, rather than a registered builder under a building contract.
- When the work was completed, supported by permits, final inspection documents, invoices or other records.
- Which statutory period and transitional arrangements apply to the sale.
- Which report, insurance or Home Warranty obligations applied when the contract was signed.
Do not decide applicability only from the presence or absence of a building permit, the renovation price, or the label “cosmetic renovation”. Related: Do I need a Section 137B report for renovations without a building permit?
2. Why does finding out after signing matter?
Where Section 137B applies, the seller must obtain the defects report from a prescribed building practitioner no more than 6 months before the contract is entered into and give the buyer a copy, along with any required insurance certificate. In other words, the obligations attach to the point of signing.
The Building and Plumbing Commission’s guidance also says the report must detail defective or non-compliant work and be given to the buyer, and discusses insurance or Home Warranty arrangements before the contract is entered into, depending on the scheme.
Separately, Consumer Affairs Victoria explains that a Section 32 vendor statement must be given before a buyer signs. These are related but different legal questions: a missing Section 137B report is not automatically a Section 32 defect, and a Section 32 issue does not automatically create an unconditional right to end the contract.
A report ordered after signing may reveal the condition of the work. It should not be treated as a way to erase an earlier non-compliance.
3. Can the buyer cancel the contract because the 137B report is missing?
Do not assume an automatic right to cancel. Section 137B states that a contract entered into without complying is not void, but that the buyer may avoid it before completion. Whether that applies to your contract depends on whether the section applied to the sale, the facts, and the steps the parties have already taken.
Other issues can overlap, including the Sale of Land Act 1962, statutory warranties, the contract terms and any representations made during the sale. Only the buyer’s conveyancer or solicitor, with the actual documents and chronology, can advise which rights may be available and how and when they must be exercised.
For buyers: before sending a notice, withholding settlement funds or accepting a proposed variation, get specific legal advice. Timing and wording can matter.
For conveyancers: preserve the original contract pack, the Section 32 material, dated correspondence, earlier seller statements and any late-supplied documents. Escalate legal questions beyond the scope of conveyancing where needed.
4. Can the seller supply a Section 137B report before settlement?
Yes, a seller may commission an inspection and provide a report after signing. That can help both parties understand the inspected work and any defects. However, a late report is not guaranteed to make the original contract or disclosure compliant, and its legal effect needs separate advice.
Before agreeing to proceed, the buyer’s representative may wish to clarify:
- Why the report was not obtained or supplied before signing.
- Whether a report and insurance or Home Warranty cover were legally required at that time.
- Whether an insurance policy or notice of cover exists, and when it took effect.
- Which works the proposed inspection will cover.
- Whether the parties need time to review new defects, get quotes or take independent advice.
- Whether any contract variation, agreement or settlement timetable must be documented by the legal representatives.
A building inspector supplies technical observations; the legal representatives decide how to deal with them in the transaction.
5. What if the late 137B report identifies defects?
A Section 137B inspection is not a promise that the property is defect-free. It documents defective or non-compliant work within the inspection scope. Findings might include visible waterproofing or moisture problems, defective cladding, roofing faults, drainage issues, unsafe connections or incomplete work.
A newly identified defect could prompt the buyer to seek:
- Clarification of the risk and the recommended next investigation.
- Specialist engineering, waterproofing or building surveyor advice where warranted.
- A rectification proposal and evidence of completion.
- Repair quotes and legal advice about a negotiated solution.
Ask the insurer and your adviser how defects already identified in a report are treated under any insurance or Home Warranty cover. Do not assume a post-contract inspection restores or extends any protection. Any repair agreement, price adjustment, special condition or extension should be documented by the legal representatives.
6. Missing 137B report vs missing owner-builder insurance: two different problems
A Section 137B defects report records physical conditions. Insurance or Home Warranty cover is a separate statutory and insurance matter.
Current Building and Plumbing Commission guidance describes different arrangements depending on completion dates and the applicable scheme, and its wording on time limits is not fully consistent with the Act or with other official material. Victoria also introduced Home Warranty reforms from 1 July 2026. Do not use one dollar threshold or time limit for every past project. The conveyancer or solicitor should check the legislation and transitional provisions for the particular work and sale.
A report does not create an insurance policy, an insurance certificate does not replace a required defects report, and neither gives retrospective approval for unpermitted building work. More: Section 137B report vs domestic building insurance.
7. Does a seller’s general building inspection count as a Section 137B report?
Not necessarily. A standard pre-purchase building and pest inspection and a Section 137B owner-builder defects inspection may overlap, but they differ in purpose, scope and reporting requirements. For a report to meet Section 137B, the practitioner, timing, scope and contents need to satisfy the applicable rules.
Buyer tip: a seller-supplied statutory report does not remove the value of commissioning your own independent pre-purchase inspection of the whole property. Some areas fall outside the owner-builder inspection scope.
8. Checklist for conveyancers: contract signed, report missing
This is a workflow checklist, not a legal opinion or a guarantee that settlement can proceed.
| Step | Check | Why it matters |
|---|---|---|
| 1 | Preserve the signed contract, Section 32, attachments and correspondence | Establishes what was available before signing |
| 2 | Confirm the owner-builder work and dates | Determines whether Section 137B may apply |
| 3 | Ask for permits, certificates, contracts and invoices | Establishes the scope and who was responsible |
| 4 | Check whether a valid report was actually supplied | A report may exist but not be in the contract pack |
| 5 | Separately check insurance or Home Warranty documents | Report and cover are not interchangeable |
| 6 | Get legal advice on the omission and any deadlines | Rights and options depend on the facts |
| 7 | If appropriate, request a scope review and arrange an inspection | Gets independent technical information |
| 8 | Review defects and any specialist follow-up | Treats the physical risk seriously, not as a formality |
| 9 | Document any agreed outcome through the legal representatives | Avoids relying on informal or verbal assurances |
If settlement is close, the legal review and the inspection enquiry can run in parallel, without assuming the inspection alone resolves the legal issue. More for practitioners: Section 137B for solicitors and conveyancers.
9. What should a buyer do right now?
- Send your conveyancer the exact details of the renovation or owner-builder work and any messages from the seller or agent.
- Request copies of any existing defects report, permits, completion records and insurance or Home Warranty documents.
- Ask for legal advice on whether Section 137B applied at signing, what the omission means, and whether any deadlines apply.
- Consider an independent building and pest inspection for wider property risks; do not rely on the statutory report alone.
- Do not make assumptions about the deposit or ending the contract before legal review.
10. How a registered inspector can help without taking over the conveyancer’s role
Owner Builder Inspection Melbourne carries out Section 137B owner-builder defects inspections across Melbourne. We can:
- Review the nominated renovation scope for inspection purposes.
- Identify the work to be assessed and any access or specialist limits.
- Carry out a visual, non-invasive inspection within the agreed scope.
- Record observable defects or non-compliance with supporting photos in the report.
- Provide the written report.
We do not decide whether a buyer can end a contract, whether an omission affects a transaction, whether insurance must be issued, or whether a building permit should have been obtained. Those decisions need the appropriate legal, insurance or building surveyor specialist.
Need a Section 137B inspection for a sale already under contract?
Enter the property address and the renovation scope online. If the contract is already signed, call us as well and mention the settlement date so the enquiry can be reviewed with that context. Inspection timing depends on location, scope and availability.
The online check is preliminary and is not a legal determination. Legal obligations remain with the parties and their advisers.
Frequently asked questions
Is a Section 137B report required before or after signing the contract?
Where Section 137B applies, the report must be obtained no more than 6 months before the contract is entered into and a copy given to the buyer. A report supplied after signing may provide information, but should not be assumed to satisfy that earlier obligation.
Can a buyer walk away from a Victorian property sale if there is no 137B report?
Section 137B says a contract made without complying is not void, but the buyer may be able to avoid it before completion. Whether that applies depends on whether the section applied to the sale and on the facts, so get transaction-specific legal advice immediately.
Can the vendor simply supply the 137B report before settlement?
The vendor can commission a report, but providing it later is not guaranteed to cure an earlier failure. A conveyancer or solicitor should review what it means for the existing contract.
What if the contract has already gone unconditional?
An unconditional contract does not, by itself, answer every statutory question. Equally, it does not guarantee that the buyer can end the contract. The law and the contract need legal analysis.
Is a missing Section 137B report the same as an incomplete Section 32?
Not automatically. Different obligations and documents may be involved. A solicitor or conveyancer should review the actual vendor statement and the statutory requirements rather than treating the two as the same.
What if the owner-builder renovation had no building permit?
First establish whether a permit was required. Permit compliance and Section 137B sale obligations are separate issues, and a defects report does not grant retrospective approval for unauthorised work.
Does a normal pre-purchase building inspection replace a 137B report?
Not automatically. The two inspections have different purposes, scope and practitioner requirements. Buyers may still benefit from an independent pre-purchase inspection even when a compliant statutory report is supplied.
Does obtaining a late report guarantee insurance cover?
No. Insurance or Home Warranty obligations depend on the applicable scheme, the policy and the dates. Ask the insurer and your adviser how defects already identified in a report are treated.
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 checklist and Consumer Affairs Victoria — Inspect properties before you buy.
General information only. This guide is not legal, conveyancing, insurance or building surveyor advice. The statutes, transitional arrangements, contract terms and facts must be checked for each transaction. Last reviewed: 10 October 2026.