Home buyers in Geelong and Wyndham fear they have lost their deposits following the latest building company collapse.
Melbourne-based Montego Homes was placed into liquidation this week, leaving scores of customers at risk of losing thousands of dollars handed to the company as downpayments on new homes.
The Victorian Builing Authority (VBA) has suspended the registration of Montego Homes nominee director, Todd Searle, pending an investigation into the business.
It’s believed as many as 64 clients – many of them in Geelong and Wyndham – paid the company almost $900,000 for building sites that were not covered by domestic building insurance, as is legally required.
The VBA has ordered Mr Searle to show cause why he should not be subjected to disciplinary action.
The failure of Montego homes, which has been in operation for 50 years, comes a day after it was revealed Apex Homes Australia is fighting to avoid forced liquidation.
Apex also operates in the Geelong and Wyndham regions.
Last year’s collapse of building giant Porter Davis prompted the Victorian government to announce a support scheme for the victims of failed builders that offered payments of up to $50,000.
That program ended on January 29, meaning Montego Homes clients who lose their deposits are not eligible for assistance.
Administrator Cor Cordis confirmed on Tuesday that 63 customers of the builder were not covered by appropriate insurance.
