Owner Builder Notices And Disclosure in Queensland

Written by Ruby Natoli, Conveyancing Manager

In Queensland, if you’ve taken on the challenge of building or renovating your own home as an owner builder, and you are looking to sell within six years of completing the work, there’s one critical step you can’t afford to overlook – disclosure. 

What is an Owner-Builder? 

An owner-builder is someone who carries out building work on their property under a permit issued by the Queensland Building and Construction Commission (QBCC). Unlike work done by licensed builders, owner-builder work is not covered by standard insurance under the Queensland Building and Construction Commission Act. You will need a permit if you want to undertake a building project valued at more than $11,000 on your own land. Once you get this permit, a notification is added to the title of your property for seven years, and this is referred to as an Owner-Builder Notice.

The Owner-Builder Notice is attached to the permit for the property, rather than the person who applied for it. In practical terms, this means that even if the property is sold multiple times within the seven-year period, the legal obligations tied to the Notice do not change, even if the Owner-Builder themselves are no longer the owner of the property. 

Disclosure Requirements 

If you are selling a property with an Owner-Builder Notice, you must 

• Provide a signed disclosure notice to the buyer before signing the contract.
• Ensure the notice contains a list of the building work that has been carried out under an owner-builder permit, the name of the person who completed the work and the warning:
  “Warning – the building work to which this notice relates is not covered by insurance under the Queensland Building and Construction Commission Act 1991”.
• The disclosure notice should be signed in duplicate, with one copy returned by the buyer and the other kept for records.
• List it in the contract of sale and attach the Owner-Builder Disclosure to the contract. 

The disclosure must be signed by both parties before the contract is signed. Failure to comply with these requirements may result in serious legal and financial implications for the sellers. 

What Happens If Disclosure Is Not Made?

If an owner-builder fails to disclose the work correctly, the law assumes a warranty that the work was properly carried out. If the buyer later discovers defective work, they may:

• Pursue the seller for damages, including, but not limited to, repair costs, legal fees, and even temporary accommodation expenses.
• Seek to terminate the contract before settlement if they can prove the defects exist.

The owner-builder remains liable for the warranty, even if the property is sold multiple times within the six-year warranty period.

We recommend obtaining legal advice before signing any contract to protect your interests. 

More Questions?

If you have more questions about Owner Builder Notices, our friendly, experienced team of conveyancers would be happy to assist. Call us on 1300 539 529, reach out via our contact form, or have a custom quote emailed to you today. 

The above is not legal advice, and is general information only. 

About the author

Ruby is in her final year of a Bachelor of Laws/Bachelor of Business dual degree at the University of the Sunshine Coast. Ruby joined Keylaw in 2021 and has gained extensive experience in property transactions, client relations, and legal compliance. Ruby is passionate about expanding her expertise in the legal field as she completes her studies. In her spare time,  Ruby enjoys socialising, watching sports and taking her dog Lulu for walks in the park.