Advice for owner builders

What is an owner builder? 

An owner-builder is someone who carries out domestic building work on his or her own land and isn't in the business of building.

Here are some things aspiring owner-builders should consider before they start building or try to sell a property.

Things to consider before becoming an owner-builder

Building limits

In Victoria, an owner-builder can only build or renovate one property every five years and must intend to live in the property once it’s completed.

Permits and other compliance issues

If the value of the proposed domestic build work is more than $16,000 (including labour costs and materials), you must apply for a certificate of consent from the Victorian Building Authority (VBA) to become an owner-builder.

You must obtain a building permit before you commence building works, and be named as the owner-builder on that permit. 

It is your responsibility to ensure that the work meets:

You must arrange for building inspections as required by your building permit at particular stages of the building work.

You must obtain an occupancy permit, or certificate of final inspection from the relevant building surveyor once work is completed.

Things to consider when selling an owner-built house

Insurance

You must purchase domestic building insurance before entering into a contract to sell a property you've built. This insurance covers future owners for defective works if you die, disappear or become insolvent.

Find out more at the VBA webite about therequired insurance for owner-builders when sellinga building.

Building report

If you sell your building within six and a half years of construction, you must also provide a report on the building from a registered building practitioner and provide the required insurance cover.

Liability for defective works

If you sell your home after carrying out building works valued at more than $16,000, you continue to be liable for any defective works for six and a half years from the completion of the work.