07 Feb

Buying From An Owner Builder? Here’s What You MUST Know About Owner Builder Permits in Queensland

What You Need To Know About Buying From An Owner Builder

If you’re buying a home from an owner builder, there are considerations to make. It’s important to understand the owner builder permits Queensland builders are required to hold and comply with. In addition, you’ll want to know what the consequences are for you as the buyer if the property turns out not to be up to scratch.

What is an Owner Builder Permit in Queensland?

An Owner Builder permit is issued by the Queensland Building and Construction Commission to a homeowner for personal building projects over $11,000. The homeowner must complete a short Owner Builder course before they are permitted to personally work on and be responsible for the renovation or building work. While they may feel confident in their building projects, there are still some concerns and risks for Owner Builders such as the stringency of their responsibilities and the invalidation of Home Warranty insurance. However, a good property inspection is vital in figuring out your next step!

What are the concerns surrounding Owner Builders?

There are several things that Owner Builders are responsible for while conducting their own building projects, including:

Staying within the bounds of their permit
Maintaining quality control
Ensuring work practices and environment comply with
Workplace Health and Safety
The National Construction Code

As a buyer, you also want to confirm that all these things were kept up to standard before it becomes a problem for you. Qualified professional builders are trained to stick to regulations to give an industry standard and reliable result for building and renovations. Completing a fast and easy course may not provide Owner Builders these essential skills to have in their toolbox. Generally, licensed builders can provide more services than Owner Builders who have access to less.

While things seem to have run smoothly with an Owner Builder’s work, if cracks form, you won’t have the security blanket that Home Warranty Insurance provides.

What is Home Warranty Insurance?

Homeowners can make claims for unfinished work or unfixed defects by contractors so that they can be assisted in rectifying these issues. Contractors pay a premium so that the construction is insured and the homeowner is protected. By becoming an Owner Builder, the homeowner opts to take all responsibility for work done and legal requirements. Because an Owner Builder personally takes on the work of a project, they are responsible to see it through with no defects or mistakes. This means they aren’t covered by Home Warranty insurance and buyers won’t be insured for defective work.

What should you do when interested in an Owner Builder’s home?

Here at Action Property Inspections, we provide a thorough building inspection to show any and all risks in comprehensive inspection reports. A proper inspection will discover any risks in an Owner Builder’s home before you are left with having the burden of fixing problems yourself.