Deposits lost as collapsed home builder’s liquidators urge patience
Property owners caught up in the collapse of Porter Davis will lose their deposits as plans for their homes are held hostage.
A partially finished Porter Davis home in Rochedale,. Building works stopped immediately on more than 1700 properties in Victoria and Queensland. (AAP Image/Jono Searle)
Liquidators Grant Thornton on Tuesday hosted a webinar for Porter Davis customers, which immediately ran into trouble as the meeting hit capacity and many were blocked from attending.
In a recording later published online, liquidator Said Jahani acknowledged customers’ frustration but urged them to be patient, saying Grant Thornton should know within a week whether Porter Davis would be sold.
The plan was to find a builder or builders who could step in and take over contracts, Mr Jahani said.
“The reality is, we just don’t have the luxury of this process dragging out for weeks and months,” he said.
Liquidators hoped they could get customers’ homes built quicker than if they went through insurers, with both Queensland and Victoria having state-backed warranty insurance schemes.
However, there was no guarantee the process could be expedited, Jahani said.
There were also some people without insurance.
They fell into a gap between paying Porter Davis a deposit and not having an insurance policy until weeks or months later when a permit was obtained, Jahani said.
“At it’s extreme, it means you do not have any insurance cover, and it means that the deposit you have paid has been lost,” he said.
“However, as I have said, we are trying to work with the VMIA (Victorian Managed Insurance Authority) and the QBCC (Queensland Building and Construction Commission) to see whether there is an alternative solution there.”
Generally, it wasn’t possible for customers to get their deposits refunded and switch to another builder, Jahani said.
Porter Davis also owned customers’ plans and designs as part of its intellectual property.
“We’re investigating whether there is an ability to allow customers access to their plans to allow them to at least complete their house,” Jahani said.
Liquidators would examine whether Porter Davis was trading while insolvent and if that meant they did wrong by customers, Jahani said.
About 240 customers were expected to have the least delays.
Their properties were essentially ready to be handed over and liquidators were looking to have them sort out any remaining work and receive a certificate of occupancy.
Remaining customers whose homes were either not yet started or at lock-up stage would have to get other builders, Jahani said.
He condemned contractors accessing sites without written permission and said vandalising homes was effectively targeting its customers.
Reports have also circulated of builders targeting Porter Davis homes, with one home going up in flames on Monday in Melbourne’s southeast.
It took fire crews 40 minutes to bring the blaze at Andante Crescent at Clyde under control. Police are investigating.
Grant Thornton has issued several notices to suppliers and contractors warning them of criminal liability for unauthorised site access.
The home builder’s demise affects more than 1700 properties in Victoria and Queensland, with an estimated 1500 in Victoria.