Want To Do Your Own Building Works On Your Land? What You Need to Know
Owner builder work is the term used when someone undertakes a residential building project on their own land without employing a licensed builder to oversee the project.
If you want to build your own home, or do substantial renovations, you may need an Owner Builder Permit issued before you start work.
You’ll need a Permit if your project is valued at $11,000 or more.
For ‘farm buildings’ (machinery sheds or improvements used for agriculture or pastoral purposes), the value of the work you can do can be up to $27,500. If you build, renovate or alter ‘farm buildings’ under this value, you do not need to obtain a Permit. For any work conducted over this value, you are required to engage a licenced contractor. Refer to this link for more information.
The main benefit to conducting the building work yourself is it can keep your costs down, as you are the ‘head contractor’ on the project. As such, you’ll be responsible for engaging and co-ordinating your contractors and ensuring the work complies with the relevant laws.
What Can You Do As An Owner Builder:
Build a new home
Renovate, alter or extend an existing home
Build a garage, carport or residential shed
Build a swimming pool for residential use
Build a pergola or entertainment area for residential use
Complete a new home from a particular stage contracted to a QBCC licenced builder (e.g. they complete to the ‘enclosed’ stage, and you conduct the last stages)
What You Cannot Do As An Owner Builder:
Do occupational work such as plumbing, electrical, gas fitting, pest control unless you have a licence to do so
Carry out fire protection work or mechanical services valued at over $1,100 (unless you hold the required licence)
Remove more than 10m2 of asbestos
Build commercial or industrial buildings (i.e., industrial sheds or farm buildings)
Build or renovate multiple dwellings (i.e., attached granny flats, duplexes, blocks of units, boarding houses)
Do any work not stated in your Permit conditions
As an Owner Builder you can be fined if you undertake work outside your Permit conditions.
Disadvantages of Owner Building:
1. If you are an owner builder, you are not eligible for insurance through the Queensland Home Warranty Scheme. This insurance helps homeowners when:
The contractor fails to finish the works
The contractor fails to rectify building defects
The building is damaged if the ground subsides or settles
2. It may impact on selling your Property
A notification is placed on your Title. If you sell the property within the first 6 ½ years of completing the owner builder works, you must notify the prospective buyer in writing before they sign a contract.
The notice must contain:
details of the building work
the name of the person that performed the work
a statement confirming the work was performed under an Owner Builder Permit
the words “Warning — the building work to which this notice relates is not covered by insurance under the Queensland Building and Construction Commission Act 1991”.
Two copies of the Owner Builder Notice must be given to the buyer, and the buyer must sign one copy of the notice and return it to the seller on or before the date the contract is signed.
If you fail to provide the correct notice to the Buyer before they sign the contract, you are effectively providing the buyer a contractual warranty that the building work was properly carried out (in accordance with the standard terms of contract). If the buyer later discovers that the work was not properly carried out, they may attempt to claim compensation from you.
3. You are limited to one permit every 6 years (some exceptions apply).
More information can be found here.
What Should You Do If Selling?
If you are looking at selling your property and have erected or renovated a building as an Owner Builder, we recommend you engage a lawyer to ensure you provide the correct disclosures to the Buyer before they sign a contract.
If you would like any guidance on understanding your obligations as an Owner Builder, please contact our office and we can assist.
At Statewide Legal Practice, we regularly assist Sellers and Buyers with the sale and purchase of their farms or houses. Contact us if you require assistance.
The content of this article is intended to provide a general guide to the subject matter. Specific advice should be sought about your particular circumstances.