🎙️Cate, Dave and Mike answer a listener question this week that goes well beyond the glossy renovation photos, digging into the paperwork behind the finishes and what a buyer is actually entitled to see before signing.

Michelle is weighing up a Melbourne home with a new kitchen, bathroom, ensuite, structural changes and hydronic heating, all completed by an owner-builder within the last two years. A Section 137B report only appeared after she pushed for it, and it’s a visual inspection only. Cate explains what these reports do and don’t cover, why they never replace permits or certificates, and how the threshold has moved to $20,000. Mike highlights what a visual report simply can’t see, from waterproofing membranes behind the tiles to hidden hydronic pipework.

🏡 The trio work through the Section 32, the seven-year permit window, the six and a half year owner-builder obligations and Victoria’s move to a “first resort” domestic building insurance scheme. But once the disclosure window closes, does the risk close with it? Cate is clear that the buyer inherits the liability, and she shares practical advice on calling your insurer before buying and why title insurance deserves a conversation.

Then comes the big question: is there a discount that makes missing certificates acceptable? Mike argues for anchoring any discount to the real cost of finding out and fixing, rather than a percentage, while Cate weighs up disruption, valuation traps and the moment to walk away.

📊 Finally, the Trio go around the country, comparing Queensland’s new Form 2, South Australia’s Form 1, the ACT’s building and compliance inspection report, and very different owner-builder rules in NSW, Queensland and WA. With Victoria’s Section 32 reforms arriving on 1 June 2027, will buyers ever see a consistent national standard?

From permits and certificates to insurance, negotiation and walk-away points, this episode is a reminder that a beautiful renovation is only as sound as the paperwork behind it.

And our gold nuggets……..

Cate Bakos’s gold nugget: Cate highlights the risks associated with water-related issues. From water ingress to plumbing issues, these are often the flagged items that can cause the most stress for buyers. On that note, waterproofing is an essential task that Cate seriously cautions buyers to access certificates for.

Mike Mortlock’s gold nugget: “You don’t want to pay a premium for a renovation that may have to be rectified in the future.”

Dave Johnston’s gold nugget: Dave brings the Owner-Builder challenge back to lending. Construction loans via Owner-Builders are notoriously challenging, and this is a reflection of the risk. Lower LVR’s, higher rates, etc. Dave sheds light on some of these risks, and highlights why lenders are tougher on these types of loans.

Related episodes:

68           Renovations – Part 1: Tips and mistakes to avoid

70           Renovations – Part 2: Planning for success and insights from the federal budget

165        The extra mile buyers should go when shortlisting a property – Inspecting like an expert & how to spot red flags

216        Valuing Uniqueness – Appraising Properties with Special Features or Drawbacks

350        Selling Property Smarter – Maximise Your Sale Price Without Overcapitalising on Renovations or Improvements

Upcoming episode: #386 – Is the Rental Crisis Easing or Are Australians Giving Up on Living Independently?