Ep. 42 | What Is A Section 137B & How Can It Affect You

Imagine buying a beautifully renovated home only to discover months later that the works weren’t council-approved, your insurance won’t cover damage, and you might have to spend tens (or hundreds) of thousands to fix or demolish the improvements.In this episode of How’s The Market, Tristan Larkin and James Rankin unpack Section 137B Reports what they are, what they’re not, and why they matter for Melbourne buyers. They explore how these reports can reveal unapproved renovations, missing permits, and even works that aren’t built to code. More importantly, they explain how these disclosures shift all the risk to the buyer.From real-world examples of buyers being left with demolition orders to lender finance risks and insurance claim nightmares, this episode is a must-listen if you’re house-hunting in Victoria. Tristan and James share a recent case study where they advised a client to walk away from a stunning property after uncovering major risks hidden in the contract saving them from a potential financial disaster.What You’ll Learn:What a Section 137B Report actually is and when it’s requiredThe difference between “disclosure” and true council approvalWhy these reports can protect vendors but expose buyersKey risks: council action, insurance refusal, and finance rejectionsRed flags to look out for in special conditionsWhy getting your own building & pest inspection is crucialReal-world examples of when to walk away—no matter how beautiful the propertyIf you’re bidding at auction or reviewing a contract with a 137B in it, don’t miss this one. Tristan and James break down exactly what to check, who to speak to (conveyancer, building inspector, council), and how to protect yourself from nasty surprises after settlement.👋 About the ShowHow’s The Market is Melbourne’s go-to podcast for buyers who want to make smarter property decisions. Hosted by Tristan Larkin and James Rankin from TOMII Property, we bring you expert tips, market insights, and real stories from the frontlines of real estate, finance, and construction. Auctions, rates, off-markets — we’ve got you covered.🔗 Resources & LinksJoin our mailing list & read the blog → www.tomii.com.auSubscribe for weekly auction results → www.tomii.com.au/auction-resultsFollow Tristan on TikTok & Instagram → @tristanlarkinFollow James on TikTok & Instagram → @james__rankin