February « 2010 « Home Building Online News

Under any type of contract, a guarantor is a person (or persons) who guarantee payment to someone if the party to a contract fails to make payment.  A guarantor is not a party to the contract, however, they are legally liable to make payment as if they were a party.

When entering into a building contract, if Person A (the home owner) is the party to the contract with the builder, and Person B is going to be making some or all of the payments under that contract, then it is wise for the builder to request that, in addition to Person A signing the building contract, Person B signs a separate Deed of Guarantee.  This will allow the builder to legally chase Person B for payment if Person A fails to make payment under the contract.  Without a signed Deed by Person B, the builder cannot legally chase Person B for payment.

When you obtain a builder’s licence through the Office of Fair Trading, you are required to advise them of your business and /or residential address, and this is displayed on the public register.

If your office and / or residential address changes, the Home Building Act states that you must notify the Office of Fair Trading within seven (7) days of the change.

Our advice – plan ahead and notify the Office of Fair Trading as soon as you occupy the new address, as you don’t want licence renew forms or other important documents being sent to your old address, as well as the possibility of receiving a fine.