Buying or selling an owner built property in Queensland and what you should know.
You should always and where ever possible obtain independent legal advice before you enter into and sign a Contract on a property that you are selling or buying.
When someone makes an application to the Queensland Building and Construction Commission (QBCC) to complete works as an owner builder on a property, and this also applies to any owner built renovations, alterations or additions.
The QBCC will lodge notification on the Title to the property at the Titles office. The registration is Administrative Advice. These remain on the Title for 7 years.
If you are buying a property with Administrative advice lodged by QBCC within 6 years from the date of owner-built works being completed, the Sellers are required to give you ‘notice of owner builder work’ before you sign a Contract for the purchase of the property.
You must be provided with 2 copies of the “Notice”, and the owner must sign 1 copy and provide this you prior to signing the Contract.
The notice must contain –
- details of the owner building work done under the permit
- the name of the permit holder who carried out the work
- a statement confirming the work was done under an owner-builder permit
- the following notice: “Warning – The building work to which this notice relates is not covered by insurance under the Queensland Building and Construction Commission Act 1991”.
If you proceed to re-sell the property within the 6 year period, you must provide the same notice outlined above.
After the 7 year period you can make a request for the removal of the Administrative notice.
You can also complete a free search on the QBCC website.
If you are unsure please always obtain legal advice.