Owner Builder Permits
It is not usual for there to be a notation on a title search stating owner builder with a year next to it. The reason why it is there is not readily apparent.
One of the main issues with owner builders is that the work is not covered by the QBCC insurance. This is the statutory insurance which covers minor
defects for 6 months and 6 years for structural defects. This is fair enough with the owner who did the work because why should he be able to claim
for his own defective work. The problem arises where the property changes owners.
The warranty runs from when the work was completed not from when the permit was obtained or building approval was obtained. So the year noted on the
title search may not be accurate. The 6 year period could have started much later.
You must advise the Buyer about the owner builder work before they sign the contract and it needs to be in writing. There are a number of requirements that must be included in the notice so it is recommended you use a notice prepared by a law firm. We have precedent forms which you can obtain from us at no cost.
For further information please contact Roland Taylor on 0417 605 185 or email@example.com.