QLD Owner Builder – EXPLAINED!

Quick answer: An owner builder permit lets you manage building work on your own property instead of hiring a licensed builder. In Queensland you need one from the QBCC for owner building work valued over $11,000, and you must complete an approved course first.

We explore what you need to know about OWNER BUILDER when buying or selling a property in Queensland…

 

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Owner Builder

What is an owner builder in Queensland?

You are an owner builder when you take on a residential building project on your own land without engaging a licensed builder to run it. You are not just paying for the job. You are stepping into the builder’s shoes, which means you carry responsibility for the work, for site safety, and for compliance with the building approval.

The owner builder permit

You need a QBCC owner builder permit for residential building work valued at more than $11,000. The threshold for farm buildings is higher at $27,500. Below those figures you do not need the permit, although you still need any building approval the work requires. Two restrictions catch people out. First, the QBCC will generally only issue you one permit every 6 years, with exemptions available in limited circumstances such as serious medical or financial hardship. Second, if you sell within 6 years of the work being completed, you must tell the buyer in writing that the work was owner built. The notification also sits on the title, and stays visible for around 7 years. That disclosure obligation is where owner building meets conveyancing, and it is the part people forget until they are already on the market.

Who is eligible to become an owner builder

To be eligible to obtain a permit to build on your property you must be:

• an owner– Your name must be on the title.
• a company director– If a company owns the property you must be one of the directors.
• a lease occupier– If you’re living on land under a lease, licence, or other authority from the owner you can apply for a permit. You must get permission from the owner.

Who is not eligible

You cannot apply for an owner builder permit if you or any of the applicants on the form (including directors of a company applicant):

• have been served with a notice by the QBCC for carrying out Tier 1 defective work;
• have not paid a fine for a QBCC infringement notice;
• have had an owner builder permit cancelled by us in the last 3 years; or
• already have an owner builder permit issued in the last 6 years, although we sometimes grant exemptions to the 6-year ruling.

What an owner builder can do

• 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. a QBCC-licensed builder was contracted to build the home to the enclosed stage and you want to do the last stages)

You Cannot:

• carry out occupational work such as plumbing, draining, gas fitting or pest control unless you have an occupational licence (i.e. a plumber’s or gas fitter’s licence etc.)
• carry out fire protection work or mechanical services work valued at more than $1,100 (unless you have the appropriate licence)
• remove more than 10m² of asbestos
• carry out mechanical services work
• build commercial or industrial buildings (e.g. shops, industrial sheds, farm buildings)
• build or renovate multiple dwellings (e.g. duplexes, attached granny flats, boarding houses, blocks of units or single units in a unit block)
• do any work not stated in your permit conditions.

No access to home warranty insurance:

Owner builders are not eligible for insurance through the Queensland Home Warranty Scheme. This insurance protects home owners who have a contract with an appropriately licenced contractor. This insurance helps home owners when:

• the contractor fails to finish the building work for reasons which are not the home owner’s fault;
• the contractor fails to rectify defective building work;
• the building is damaged when the ground subsides or settles.

 

Limited number of projects:

You can only do a limited number of projects as an owner builder.

QBCC can only issue one permit to you every 6 years. In some circumstances you can apply for an exemption to obtain another permit within 6 years.

Sell an owner builder property

The Queensland Building & Construction Commission Act 1991 provides that if a property is to be sold within six (6) years of an owner builder completing owner builder work on the property, the seller must provide a prospective purchaser a written notice BEFORE signing any contract of sale stating:

• Details of the domestic building work performed
• The name of the person (permit holder) who performed the work
• A statement confirming the work was performed under an owner builder permit
• Supply the following notice” Warning – the building work to which this notice relates is not covered by insurance under the Queensland Building & Construction Commission Act 1991”.

 

The notice must be given in duplicate and the purchaser must sign and return one copy before signing the Contract.

If a seller fails to give the requisite notice as detailed above then Section 47(2) of the Queensland Building & Construction Commission Act provides that the seller is deemed to have given the Buyer a contractual warranty that the building work was properly carried out.

The QBCC maintains an online register of owner builder permit holders. Anyone can search this register by name or address.

How to remove an owner builder notification from your property title

The owner builder administrative advice must remain on your title for 7 years. 

In accordance with the Queensland Land Title Practice Manual, Titles Queensland will remove the owner builder administrative advice after the 7 years when another dealing is being registered.

Once the 7 year period has expired, if you require the owner builder administrative advice to be removed without the need for another dealing to be registered, then the registered owner (or their representative) can prepare and lodge a Form 14 General Request to remove the owner builder administrative advice, noting that there is an administrative fee for this request.

We can help…

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We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice. 

Buying a property that has had owner builder work done? Unapproved or non-compliant building work is one of the most common title insurance claims in Queensland, and enforcement action lands on whoever owns the property at the time, not the person who built it. Our guide to title insurance in QLD covers what is protected, what it costs and where the exclusions sit.