Dirty Deeds – Not Dirt Cheap! QBCC Deeds of Covenant and Assurance

Dirty Deeds – Not Dirt Cheap! QBCC Deeds of Covenant and Assurance

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Has your Client signed a Deed of Covenant and Assurance (Deed) with the Queensland Building and Construction Commission (QBCC)? If so, they (the Covenantor) have guaranteed the payment of debts incurred by the building contractor/licensee up to an amount prescribed in the Deed…..and also provided security over any real property they own!

In the event of a bankruptcy or liquidation of the builder/licensee, the debt can become secured against the Covenantor’s property. If the debt is not repaid, the Covenantor’s property can be sold by the Bankruptcy Trustee or Liquidator!

It is important that your Client obtains legal advice before signing a Deed, especially given the potential consequences in the event of a bankruptcy or liquidation.

Further information about Deeds of Covenant and Assurance and licencing requirements can be found at the QBCC’s website qbcc.qld.gov.au or by contacting your advisor or our office.

“It is important that your Client obtains legal advice before signing a Deed, especially given the potential consequences in the event of a bankruptcy or liquidation.”

Article written by Jason Cronan (Director) – SV Partners Sunshine Coast