Hi, I’m posting this on behalf of a friend who is extremely distressed and seeking legal direction.
In 2020, they signed a contract for a $500,000 home rebuild project and paid a 20% deposit (~$100,000). Despite the payment, construction did not begin for nearly two years, with repeated delays and excuses. During this time, the builder pressured them to invest further, claiming property prices were increasing and promising 20% returns. He offered a caveat over other properties, but now we got to know that caveat was of no use, a mortgage on that was more, and other lenders have taken the money.
Due to pressure and financial strain from paying rent while their home was demolished, they eventually agreed. In 2022–23, the builder again paused the project, claiming insufficient funds, and asked them to lend money to complete the build, promising repayment in 3–6 months. They provided nearly $300,000 more, using a mix of superannuation funds (early release), family loans, and savings.
The builder is now saying he might declare bankruptcy and has no assets in his name—properties and vehicles are apparently under his wife’s name.
This family is emotionally and financially broken. They’ve made sacrifices, worked hard, and supported a young family while trying to trust the builder in good faith.
We are seeking advice on:
Any guidance or direction on this situation would be deeply appreciated.
In 2020, they signed a contract for a $500,000 home rebuild project and paid a 20% deposit (~$100,000). Despite the payment, construction did not begin for nearly two years, with repeated delays and excuses. During this time, the builder pressured them to invest further, claiming property prices were increasing and promising 20% returns. He offered a caveat over other properties, but now we got to know that caveat was of no use, a mortgage on that was more, and other lenders have taken the money.
Due to pressure and financial strain from paying rent while their home was demolished, they eventually agreed. In 2022–23, the builder again paused the project, claiming insufficient funds, and asked them to lend money to complete the build, promising repayment in 3–6 months. They provided nearly $300,000 more, using a mix of superannuation funds (early release), family loans, and savings.
The builder is now saying he might declare bankruptcy and has no assets in his name—properties and vehicles are apparently under his wife’s name.
This family is emotionally and financially broken. They’ve made sacrifices, worked hard, and supported a young family while trying to trust the builder in good faith.
We are seeking advice on:
- What legal avenues exist to recover the money loaned and deposited?
- Can a builder be held accountable for financial deception or fraudulent conduct in civil court?
- Can assets held in a spouse’s name be traced or reversed if they were transferred to avoid creditors?
- Should we lodge a complaint with Consumer Affairs or pursue direct legal action?
Any guidance or direction on this situation would be deeply appreciated.
