SA builder LA Homes accused of ruining family homes after promising renovation dreams

An SA builder that promised SA families their dream homes is accused of leaving them with incomplete defective homes while they lose their hard earned money.

Umesh (left) and Renuka (right) Narania say LA Homes promised to renovate their home in December 2020, to this day it is left unfinished and defected. Picture: Brett Hartwig.

A South Australian building company has left a couple with a shell of a home without running water, while another couple were forced to bring a critically ill newborn to a defective home.

Umesh and Renuka Narania say their builder, LA Homes, left them with an incomplete and defective home after the company cancelled their contract — but not before they paid a majority of the total cost of the almost $350,000 renovation.

“There was no cause or notice,” said Mr Narania, 54, who lived without a kitchen or running water since their renovation started in 2021.

“(It) has consumed our lives.”

The couple is taking LA Homes and its managing director Keith Diano to District Court for damages.

Umesh and Renuka Narania were forced to live in a ‘shell’ of a home after it was alleged LA Homes pulled out of their contract – after receiving a proportion of payment. Picture: Supplied

Keith Diano is the director of LA Homes. Picture: Supplied

Mr and Ms Narania were routinely invoiced by LA Homes, through Mr Diano for progress claims as per their HIA contract despite the stage of the construction either not being complete at the time of invoicing or being defective, according to a statement of claim submitted by the couple to District Court.

Court documents claim they were charged $30,000 for a variation in September 2021 after builders hit rock on site, but when the couple requested evidence, it was never provided.

However, in its defence filed with the court LA Homes submitted that evidence was provided.

Both parties agree that invoices were paid. However they dispute the timing of the payments. LA Homes charged interest for late payment.

The couple claims their bank refused to release funds after they inspected the site and noticed the work was not complete, forcing them to pay LA Homes personally, borrowing money from family out of fear the builder would cease working on their property.

“We want (LA Homes) to be accountable more than anything … (the company) can’t take money and … not finish the house,” he said.

Court documents show in October 2022, LA Homes invoiced the Naranias for almost $10,000 — the day after the money was deposited, the builder terminated the contract.

In their statement of claim, the Narania’s assert that a builder’s report estimated it would cost $160,000 to fix and complete their home.

“We were living in an empty shell,” said Mr Narania, who still lives in the incomplete home.

“Up until two months ago, we didn’t have running water in the house.”

The Naranias claim they paid LA Homes $347,000 over the course of the year.

The couple said they felt like the company took advantage of the fact they had never renovated before and wanted their house to be complete.

In its defence, LA Homes claims the Naranias had paid $339,431 and at the time of the contract being terminated, $52,704 was outstanding.

They claim they had no running water and had to constantly use buckets and pots. Picture: Supplied

Ms Narania claims she was forced to wash dishes outside. Picture: Supplied

When the builder left, they had no running water in the house and Ms Narania would wash dishes in her front yard. Now it’s connected, they’ve discovered the bathroom floods.

LA Homes admitted in its defence that one of the Naranias bathrooms was defective.

The family has been forced to cook on a portable cooktop and wash their clothes by hand.

“It was horrible,” said Ms Narania.

Only recently, they were able to afford to hire other people to finish the home. Two weeks ago, they finally completed their kitchen.

Their lawyer, Joshua Michaels, the husband of Consumer and Business Affairs Minister Andrea Michaels, is working on the case pro bono.

They are not the only family to have issues with LA Homes.

The family has been forced to cook on a portable cooktop. Picture: Supplied

Umesh and Renuka Narania are currently in District Court proceedings seeking damages from LA Homes managing director Mr Diano. Picture: Supplied

Hannah Lockwood and her husband, Adam King, say their Hallett Cove home has been left incomplete after two years of ongoing issues.

Ms Lockwood said Mr Diano threatened a stop of work notice in September 2023 after nine months of work.

A couple of months later, when Ms Lockwood was eight months pregnant with her first child, who was born critically ill with a heart condition, water flooded through its defective roof, damaging the walls and floorboards and causing mould growth.

A few months after that, in March 2024, was when the builder returned to ‘fix’ the roof — which a builders report still deems defective.

“We’ve been through the anger, the upset, we’ve hit rock bottom,” said the 33-year-old mum, who is now pregnant with her second child.

Hannah Lockwood and her husband, Adam King, say their Hallett Cove home has been left incomplete after two years of ongoing issues. Picture: Supplied

Ms Lockwood claims water flooded through their home’s defective roof. Picture: Supplied

In August 2023, Ms Lockwood discovered a lien had been put on her home after LA Homes failed to pay a gyprock company for sheeting.

“It was extremely stressful to have to deal with this,” said Ms Lockwood, who was forced to pay the gyprock company personally to avoid going to court.

A stone kitchen benchtop which she had paid LA Homes for was never installed. The company eventually installed it after she called them directly, even though it had not been paid.

“They kindly put our stone in because it had already been cut,” she said.

Ms Lockwood said LA Homes would also routinely invoice them for work that was not complete or defective.

Ms Lockwood said LA Homes would also routinely invoice them for work that was not complete or defective. Picture: Supplied

Mr Diano said he would not comment “at this time” as the “matters raised are subject to ongoing District Court proceedings. Picture: Supplied

Ms Lockwood says she believes it will cost at least $70,000 to fix the home. Picture: Supplied

Ms Lockwood says she believes it will cost at least $70,000 to fix the home.

The couple say they’ve paid $400,000 to LA Homes.

A spokesperson for Consumer Business Services said “as this matter is currently under consideration, CBS is not in a position to comment at this time”.

Mr Diano said he would not comment “at this time” as the “matters raised are subject to ongoing District Court proceedings”.

Originally published as SA builder LA Homes accused of ruining family homes after promising renovation dreams