Selling an owner-built house in QLD
If you sell a Queensland property within 6 years of finishing owner builder work on it, you must give the buyer a written notice before they sign the contract. The notice says the work was done under an owner builder permit and that it isn’t covered by home warranty insurance.
If you don’t give the notice, the law treats you as having warranted that the work was properly done, so you could be liable for defects found after the sale. Here’s what the notice needs to include, when to give it, and how the owner builder notice on your title works.
When the 6-year rule applies
The rule applies if you’re selling a property where owner builder work was completed in the last 6 years. Owner builder work is complete when your building certifier issues the final certificate for it, so the 6 years start from that date, not from when the permit was issued.
It doesn’t matter how big the work was. A new house, an extension, a pool or a shed built under an owner builder permit all count.
What the notice must include
Before the buyer signs the contract of sale, you must give them a written notice that includes:
- details of the building work done under the permit
- the name of the owner builder permit holder who did the work
- a statement that the work was done under an owner builder permit
- a warning that the work isn’t covered by insurance under the Queensland Building and Construction Commission Act 1991, starting with the words “Warning — the building work to which this notice relates is not covered by insurance”
How to give the notice
You must give the buyer two copies of the notice. The buyer signs one copy and returns it to you on or before signing the contract of sale. Keep the signed copy with your sale documents.
In practice, your solicitor or conveyancer and your real estate agent will usually handle this as part of preparing the contract, but it’s your obligation as the seller. Tell your agent and solicitor about the owner builder work as soon as you decide to sell, so the notice can be given before any buyer signs.
What happens if you don’t give the notice
If you don’t give the buyer the notice, the law assumes you’ve given a warranty that the building work was properly carried out. That means you may be liable to the buyer for defects in the owner builder work found after the sale.
That’s a significant risk, because owner builder work isn’t covered by the Queensland Home Warranty Scheme. A buyer with a defect claim would come to you, not to an insurer. The QBCC recommends getting legal advice when selling an owner-built home.
The owner builder notice on your title
When your owner builder permit is issued, the QBCC notifies Titles Queensland, and an administrative advice is recorded on your property title. It stays on the title for 7 years, even if you surrender the permit.
After 7 years, Titles Queensland removes the advice when another dealing is registered on the title. If you want it removed sooner than that, or without another dealing, the registered owner can lodge a Form 14 General Request with Titles Queensland once the 7 years have passed. An administrative fee applies.
The QBCC also keeps a public owner builder register, searchable by name or address, which shows permit details including the location and a description of the work. Buyers and their solicitors can check it.
Selling after 6 years
Once 6 years have passed since your final certificate, the owner builder notice requirement no longer applies. Buyers can still see the advice on the title until it’s removed, and they can still search the QBCC register, so be ready to answer questions about the work.
How to make an owner-built home easier to sell
Buyers, their solicitors and building inspectors will want to know the work was done properly. Make it easy for them by keeping:
- your owner builder permit and any amendments
- building approvals and the final certificate from your certifier
- plumbing and electrical compliance certificates
- contracts and invoices from your trades, including their licence numbers
- any warranties for products, waterproofing or termite management
- plans and photos taken during the build, especially of work that’s later covered up
A complete file shows the work was approved, inspected and done by licensed trades where required, and it can make a big difference to a buyer’s confidence.
Buying an owner-built home?
If you’re the buyer, the notice tells you the work isn’t covered by home warranty insurance. Before you sign, it’s worth:
- getting an independent building and pest inspection
- asking for the final certificate, compliance certificates and approvals
- checking the QBCC owner builder register and the title
- talking to your solicitor about the notice and your options
Frequently asked questions
Do I have to tell buyers my house was owner-built?
Yes, if you’re selling within 6 years of the owner builder work being completed. You must give them a written notice before they sign the contract.
When do the 6 years start?
From when the owner builder work is complete, which is when your certifier issues the final certificate.
How long does the owner builder notice stay on my title?
For 7 years. After that, it’s removed when another dealing is registered on the title, or you can lodge a Form 14 General Request with Titles Queensland to remove it.
Does owner builder work affect my property’s value?
It can, depending on the quality of the work and the paperwork you can show buyers. A complete record of approvals, certificates and licensed trades helps buyers feel confident about the work.
Can I get home warranty insurance before I sell?
No. Owner builder work isn’t covered by the Queensland Home Warranty Scheme.
Thinking about owner building?
If you haven’t started your project yet, read our guides to getting an owner builder permit in QLD and owner builder vs licensed builder to understand what you’re taking on.
If you’ll be working on site, our face-to-face Queensland White Card course takes 4.5 hours, costs $99 and you’ll leave with your White Card on the day.