If a Builder is taking deposits and not getting DBI how can

hammerthis · Sep 28, 2023 9:39 am

If a builder is taking deposits and not getting Domestic Building Insurance how can they be prosecuted?

This is in Victoria, and there are potentially multiple parties impacted.

I am not an impacted party, but rather I've been made aware of this issue and I'm wondering what avenues can be used.

From what I've seen VBA can't do anything, VMIA can't do anything, Consumer Affairs may be able to do something?

Surely this is illegal, can the police be involved?

building-expert · Sep 28, 2023 7:02 pm

In Victoria the builder is required to provide Home Owners Insurance before signing domestic building contract. So if there is no Insuance there can be no building contract and therefore no contract deposit.
In addition the Relevant Building Surveyor must sight Home Owners Insurance before issuing building permit.
If the builder is breching the acts, regulations and is guilty of misconduct then VBA can take disciplinary action which can be reprimand, fines, suspension or cancellation of builders registration

hammerthis · Sep 28, 2023 7:17 pm

Thanks. I called VBA today and they said it was a Consumer Affairs issue, the old handball. Seems like the government organisations don't want to do their job at the moment.