Advocating for homeowners in Fort Garry

Fort Garry

Hey there, time traveller!
This article was published 17/07/2024 (478 days ago), so information in it may no longer be current.

Throughout the last year, concerned constituents have contacted me numerous times about the aggressive and coercive tactics of some private home-buying organizations. These house-flippers are known to target vulnerable homeowners, particularly those facing personal hardships. I have been informed that some go so far as to search through obituaries to target vulnerable citizens and take advantage of their distress to make quick money from their tragedies.

These predatory individuals and corporations are often associated with the “We Buy Houses!” signs throughout the city. They also descend on many other vulnerable parties, such as people living in distressed housing or those experiencing financial difficulties, and offer them cash for their properties at a below-market rate. Once purchased the buyers often sell the property to a wholesaler, making a profit before the property has even changed hands, in a process known as “paper flipping”.

Some of these predators engage in “cloud titling”, whereby they place a lien or encumbrance on a property to invalidate or impair the title to the home, making it more difficult for the owner to sell in a conventional manner. In other cases, the predatory buyer will ask for a home inspection, then provide the homeowner with a report of supposed health and safety violations which could result in expensive renovations or even large fines. Both of these tactics create distress for the homeowner and can subsequently make them more likely to accept a low offer, because of fear of having fewer selling options or because they can’t afford required upgrades.

Countering these high pressure and predatory tactics used against vulnerable Fort Gary constituents is a task I take upon myself to bring to the Legislature. As it stands, our current consumer protection laws rarely protect people in these scenarios, since they are being pressured into selling something as opposed to buying something. Until such changes can be made, I will continue to advocate for you all on this issue, starting with an investigation request to the Manitoba Securities Commission.

Have you had experience with high-pressure real estate buyers, either on the phone or coming to your door uninvited? Please share your stories by contacting my constituency office. Call 204-421-4241, email mark.wasyliw@yourmanitoba.ca or visit us at 202-1383 Pembina Hwy.