A Property Development Company

• The property developer built a small complex of townhouses. The Owners Corporation made a claim against the developer for defective and unsatisfactory building works in excess of $500,000.

• The Property Development company did not have sufficient assets to meet the claim.
• The property developer had taken out Home Building Compensation Fund (HBFC) cover (formerly known as Home Warranty Insurance).
• The Owners Corporation was not entitled to make a claim against the HBFC unless the property developer became insolvent.

In our free consultation we discussed the impact of the claim on the company’s financial position.

Based on this situation, a Creditors Voluntary Liquidation was the most suitable option for the company. This allowed the Owners Corporation to make a claim against the insurance cover and rectification of the defective building works attended to.