Lively Laval families fear losing their savings following the bankruptcy of a promoter – Montreal
Buying a new home is a dream for many, but for some in Laval, Quebec, the dream seems to have been shattered.
“He shattered our dreams, I swear,” said home buyer Mohammad Hori.
Hori is just one of more than a hundred families who claim to have lost tens of thousands of dollars each to the promoter Bel-Habitat for the construction of houses in Laval.
Hori’s saga began in 2020 when he first met owner Luc Perrier.
“I told him I would give you $ 100,000 now,” Hori told Global News. Perrier promised a discount if a large deposit was made, Hori claims.
Residents of Little Italy take legal action against condo developer
The buyer says he got a 60% discount, lowering the cost of the new home to $ 610,000. But he says after several months of delays and apologies, the company has stopped returning calls.
Lisa Alahaydoyan said she and her family had a similar experience. She alleges that earlier this year they were tricked into making a large deposit for a house.
“They promised a discount,” Alahaydoyan said, “so the more you give, the more they give you a discount.”
She said their family had deposited $ 160,000 and was told she would get a $ 39,000 loan on the million dollar house. However, like Hori, she said there were many construction delays. She and her partner became suspicious and started asking questions.
“The mortgage broker came back to us and had to tell us that unfortunately, the day before, they had filed for bankruptcy,” she explained.
Home Buyers 101: Pre-Approved Mortgage
Now families are wondering if they will get their deposits back.
Global News’s attempts to contact the developer were redirected to a bankruptcy agent.
Home prices in Montreal and Quebec soared in June as sales plummeted: QPAREB
In a press release, the Garantie Construction Résidentielle (GCR), which administers the guarantee plan for new residential buildings, writes: “As soon as the information on the company’s bankruptcy was brought to the attention of GCR, its approval was immediately took of. The Régie du bâtiment du Québec (RBQ) has also withdrawn its license. More than a hundred consumers could be affected.
The Association of Professional Construction and Housing of Quebec (APCHQ) warns that buyers of single-family homes have a warranty protection limit of only $ 50,000.
“Of course, you can give more down payment if you wish,” explains François Bernier, senior vice-president of public affairs at APCHQ. “But you should be aware that there is no protection after this amount.”
The GCR says it will support the families and that it has filed a complaint with the Laval police against Bel-Habitat on this matter. Laval police confirm that a file has been opened on this subject.
© 2021 Global News, a division of Corus Entertainment Inc.