Required insurance for owner-builders when selling a building (home) to a purchaser
The requirement for an owner-builder to provide insurance when entering into a contract to sell a building (home) constructed by the owner-builder is found in section 137B of the Building Act 1993. In addition to the owner-builder being covered by the required insurance, the owner-builder must give the purchaser a certificate evidencing the existence of that insurance. The required insurance is specified in the relevant Domestic Building Insurance Ministerial Order current at the time of entering into the contract of sale.
If an owner builder sells their building within a 6 year period they are required to provide a report on the building from a prescribed building practitioner that contains the matters set out in the attached template. These templates can be used as a guide to preparing a report under section 137B.
You can download the following Section 137B reports
Report on Domestic Building Work (61KB) under section 137B of the Building Act 1993 (Owner-Builder construction)- Report on Building (non domestic) work under section 137B of the Building Act 1993 (Owner-Builder construction)
