Unlicensed home renovator and builder ordered to pay more than $40,000

A man who took out home renovation work without a licence, as well as breached home building legislation, has been ordered to pay $40,000 in fines and costs, after facing the Parramatta Local Court this month.

Buddy Charbel Challita, a 42 year old from Greenacre, was convicted ex-parte on 2 May, fined $6,000 for unlicensed contracting of specialist work, $18,000 for thrice demanding/receiving payment before the work had commenced and $18,000 for thrice contracting residential work without an insurance certificate.

Challita also had to pay professional and court costs, totalling $2,095, costing him $44,095 in overall.

He had applied to Fair Trading for a contractor licence in 2009. This was refused as he had a bankrupt status.

Despite this, in April 2013 he contracted with an East Hills home owner to create two new bathrooms, a laundry and a kitchen. The amount of the work would be $33,420. Under New South Wales requirements, this would need a licence. No home warranty insurance was in place.

He also received a $4,000 deposit from that property owner – this is above the 5% maximum allowed under the Home Building Act. After paying these sums, three months passed with little work undertaken.

The property owner was then required to pay for other contractors to complete the work.

Acting Fair Trading Commissioner, Rob Vellar, said that the whole idea of the Home Building Act is to protect consumers from these situations.

“Unlicensed building and commencing work without Home Warranty Insurance in place can not only have a potentially adverse impact upon the future re-sale value of a property,” said Vellar.

“It can also been downright dangerous. Always check your builder is appropriately licensed before entering into any contract for home renovations.”