Fair Trading warns of a not-so-magical homebuilder

An urgent warning has been issued for consumers not to deal with construction company Green Magic Homes Australia Pty Ltd, after its contractors license was canceled by NSW Fair Trading.

NSW Fair Trade Minister Eleni Petinos has said Green Magic Homes is no longer able to advertise, contract or carry out residential building work for which a license is required in NSW and was no longer legally able to contract to do residential construction work above $5,000.

“Consumers have paid significant sums to Green Magic Homes with their yet to be completed builds, including a customer paying $500,000 for two builds that have only had minor excavation to date,” said Ms. Petinos.

“Green Magic Homes was found to have undertaken to undertake work without proper insurance.

“At this stage of the investigation, it appears that customer funds may have been used for personal expenses, including travel, groceries, restaurants, liquor stores, gambling and lodging.”

The company’s director at the time of obtaining the license did not disclose previous convictions for fraud-related offenses when applying for a contractor’s license in 2021, the minister said.

“This serves as a warning to all operators trying to scam ordinary people – you will be caught and face all the consequences,” she said.

Anyone in New South Wales who has had issues in their dealings with Green Magic Homes or has information about its operations is urged to contact NSW Fair Trading to file a complaint.

Consumers can check whether a trader holds the appropriate license by visiting NSW Fair Tradinglaunch or by calling 13 32 20. Additionally, consumers should always check whether a contractor holds the appropriate insurance.

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