By Violet Li
Affected families by the collapse of the Victorian builder Montego Homes are reeling from losing their deposits and their dream houses in the Casey South region.
South melbourne builder Montego Homes went into voluntary administration in January, with Sam Kaso and Shaun Matthews of insolvency service Cor Cordis appointed as administrators to assess the best way to restructure or recapitalise the business.
Key initial findings have shown that 63 homeowners are affected by the company not having appropriate insurance in place for deposit holders.
According to the Victorian Building Authority, when a building contract is worth more than $16,000, builders are required to purchase Domestic Building Insurance (DBI) for their clients, which would cover incomplete or defective building works.
By law, a builder cannot take any payment, including a deposit from the client, until the insurance is in effect and the client has been given a copy of the insurance certificate.
Casey South is one of the regions Montego Homes has been active, with more than 50 out of its 171 sales listings fanning across Clyde, Clyde North, Cranbourne, and Cranbourne East.
Uninsured creditor Nicole Clarke, who bought a block of…
