The information on this page was last updated on 12 September 2008.

Construction work has re-commenced on a number of Beechwood homes.

Once consumers novate their agreement, the new Beechwood Homes will be working with the insurer Vero, to begin construction as soon as possible.

For further information on the progress of your home, contact Beechwood Homes on 9602 0999.

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The receivers of Beechwood Homes have sold the business to Mr Vic Cavasinni and Cavasinni Constructions. The sale agreement comprises all assets of the company including existing land, building, contracts, intellectual property and copyright.

Mr Cavasinni has formed two companies to take the business forward:

1. Beechwood (NSW) Pty Ltd which will be looking to enter into contracts with consumers who have not previously entered into a contract, or where construction work has not started; and
2. Home Completions Pty Ltd which will be responsible for the completion of homes where construction work has commenced.

Beechwood (NSW) Pty Ltd and Home Completions Pty Ltd are trading as Beechwood Homes.

Go to the Deloitte website for further information about the sale.

Inquiries concerning the sale should be directed to Beechwood Homes 9602 0999 or by emailing Beechwoodhomes@deloitte.com.au

The Office of Fair Trading will liaise closely with Beechwood Homes and the insurer Vero, to work through the individual needs of home owners and assist them with processing claims through home warranty insurance if required. Fair Trading will monitor the completion of homes by Beechwood Homes.

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Now that construction of homes affected by Beechwood collapse can continue, there are several options open to consumers to consider. For information about the options available, go to the Beechwood Homes buyer found page.

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Information sessions for customers of Beechwood Homes were recently held in Parramatta, Bomaderry, Mittagong and East Maitland.

Fair Trading organised the meetings to provide Beechwood customers with an opportunity to get more detail about the completion of their home.

Representatives of Beechwood (NSW) Pty Ltd, trading as Beechwood Homes and Vero Insurance Australia, attended the meetings ro provide information and answer questions for Beechwood customers.

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NSW has an effective consumer protection framework which delivers protection for consumers who are faced with the collapse of their builder’s company. As at 31 March 2008, some 1,428 claims had been lodged under the scheme since its commencement in mid 2002. $18.3 million has been paid to claimants and a further $7.2 million set aside for claims that have been accepted but not yet finalised.

Home warranty insurance provides protection for home owners of up to $300,000 (max) for defective and incomplete work as well as providing cover for a loss of deposit if work has not yet commenced. Customers would have been given a home warranty insurance certificate by Beechwood Homes shortly after they entered into a building contract with them.

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If you are having difficulty with repayments it is important that you don't ignore the problem.

Consumers should contact their lender to try to come to some sort of agreement to repay the loan. In some circumstances the lender will agree to a change in repayment plan to make it easier for you. For example the lender may reduce your repayments and extend the term of the loan or postpone repayments for a certain period of time. It is essential you get any agreement in writing.

If your lender is not willing to change your repayments you can contact Fair Trading on 13 32 20 and we may be able to help.

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Some aspects regarding the status of the construction of your home may be confusing. If you think that you need legal advice, there are a number of organisations that may be able to assist you. The Consumer, Trader and Tenancy Tribunal has a fact sheet called Need advice or legal assistance? that can be accessed from their website.

Need advice or legal assistance? in PDF format (size: 36k)

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Subcontractors and suppliers seeking payment for a current contract or the supply of materials in relation to a current contract should contact the Receivers (see above for details). Enquiries concerning payment of outstanding debts should be directed to the Voluntary Administrators (see below for contact details).

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The Voluntary Administrators, Armstrong Wily, are required to investigate the affairs of the company and report back to creditors. A meeting for creditors was held on 23 May 2008.  Unfortunately, the Administrator was unable to provide any new information of substance to home owners.

Since then, the Administrators have released two reports providing reasons for the company's current financial position. The first, comprising a separate report on each of the 3 companies that make up Beechwood Homes, was released on 10 July 2008, see below for copies.

The Administrators raised concerns over a number of ‘uncommercial’ transactions that were made by the company. These concerns have been referred to the Australian Securities and Investment Commission (ASIC) for investigation.

Amongst other things, the ASIC investigation will include the adequacy of the company’s disclosure and reporting requirements under the Corporations law as no one was made aware of these issues now being raised by the administrator.

The second Administrators report on the financial position of Beechwood Homes was released on 7 August 2008, see below for a copy.

Fair Trading is also reviewing the Administrators reports to determine if further action should be taken against Mr King under the Home Building Act.

The Administrators can be contacted on info@armstrongwily.com.au or on 9290 2000.

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For information about the construction of your home, contact Beechwood Homes:
Tel 9602 0999

For information about Home Warranty Insurance, contact Vero:
Tel 1800 554 255
Web www.vero.com.au

To receive email advice from Fair Trading of new information as it arises, register for the Beechwood Homes email bulletin. Alternatively, contact Fair Trading on 13 32 20 or send us an email to beechwood@oft.commerce.nsw.gov.au

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