Builder Lost Its License - how to get out of my contract

BelezaPura

BelezaPura

Hi All,

Got myself into a bit of a situation and am seeking some advice. Got into a contract with a builder to build a duplex in Toowoomba. Trouble is, the builder seems to have just lost its license. I need consult a solicitor who can help me get out of this contract - hopefully recover 21,000 I paid as a deposit - and move on, by engaging a different builder.

Can you recommend a good solicitor to help me out with this? I am currently overseas so the communication will have to be via email / skype / phone.

Any pointers will be much appreciated.
BP
 
Don't know about legal side but in Qld if you don't pay your annual premium they take your license, pay them and you get it back. Happens a bit. If you do the license search on the BSA it should tell you why they lost it.
 
HeadsOnBeds said:
Don't know about legal side but in Qld if you don't pay your annual premium they take your license, pay them and you get it back. Happens a bit. If you do the license search on the BSA it should tell you why they lost it.
Click to expand...

In this case, I think they have failed to pay its creditors...

The license suspension details on BSA state that the builder
"must pay all its debts when they fall due"

and have to provide an aged list of debtors and creditors...:confused:
 
[On the right-hand side of the QBCC homepage, you can do a licence search and get the full history.

Do you know why they no longer have a licence?]

Which contract did you use - HIA or MBA?

Update: OK, just saw your previous post - behind on debts. That sounds concerning.

Did you obtain pre-contractual legal advice? If so, what does your lawyer advise?

If you don't yet have a lawyer, I highly recommend Doug Skelton, who's a long-time builder who became a lawyer after his building career, and as far as I know is the only lawyer in Queensland who also holds a builder's licence. He only does construction law; he's the man.
 
Last edited:
Have a read of your contract. Not maintaining its licence may be a breach. There are probably other breaches.

Don't count on getting your deposit back though. Sounds like they have a cashflow problem and other creditors as well.
 
The contract has a clause titled "Termination by default"

It states:

The owner is entitled to give a notice to remedy breach under sub-clause 27.3 if the builder is in substantial breach of this contract. The builder is in substantial breach of this contract if the builder:

(a) ...
(b) has the builder's license cancelled or suspended

It seems I have to issue a notice to remedy breach. I assume I need a solicitor to do that.
 
BelezaPura said:
It seems I have to issue a notice to remedy breach. I assume I need a solicitor to do that.
Click to expand...
You may not strictly "need" a solicitor - in the sense that you can probably validly issue a notice yourself - but if you do things properly, you may have the chance of getting your deposit back under your QBCC warranty insurance. But if you make a mis-step, you risk jeopardising your insurance, so I would certainly consider it worthwhile throwing a lawyer a few $ to ensure you maintain your right to claim.
 
You don't need a solicitor, but it would probably be a good idea to get some legal advice before terminating a contract as there are other consequences./ Also the notice could be defective if not done correctly - but this is probably the simple part.
 
so I would certainly consider it worthwhile throwing a lawyer a few $ to ensure you maintain your right to claim
Click to expand...

Wise words... sent an email to Douglas Skelton. Will take it from there. Thanks for the advice.
 
Belezapura, I was in a similar situation last year: the builder was in repudiation of our building contract. You need a lawyer to make sure that the paperwork is done properly. There have been instances in the courts where the owner has lost (even though the builder was in breach of the contract) because he didn't do the paperwork by the book. You may spend a few thousand on a lawyer, but it might save you tens of thousands. I used Steven Gavagna at Goodman Law. Steven gave me really good advice. Goodman specialises in building law. I think that he himself worked in the building industry for many years before getting his law degree. http://www.goodmanlaw.com.au/our-people-individual/steven-gavagna
 
Thanks Property_girl!

I've followed the advice given before and have hired a Lawyer to handle the process for me. So far, things are going well and we are working on getting out of the building contract.

We will then proceed to claiming the deposit I paid.

I have zero expertise in legal matters, so definitely better to engage a Lawyer.
 
all sorted

Ok, just an update.

I've managed to get out of the contract and get my deposit back with interest of 3.25% added to the total.

Not a bad outcome! :D

Doug Skelton (Solicitor) did a great job there.

Perp, thanks for the referral...
 
BelezaPura said:
Ok, just an update.

I've managed to get out of the contract and get my deposit back with interest of 3.25% added to the total.

Not a bad outcome! :D

Doug Skelton (Solicitor) did a great job there.

Perp, thanks for the referral...
Click to expand...
Thrilled to hear, he is terrific. :)
 
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