There have been several complaints in the province of Manitoba about people using aggressive tactics to try to by homes for lower-than-market prices from vulnerable owners. The Manitoba Securities Commission says people are targeting homeowners who are experiencing financial distress leaving hand-written notes saying they are interested in buying. These are said to be people who want to buy homes at a low price and then sell them for a profit, a practice called flipping.
Deep debt, rising house prices fuel aggressive tactics
The personal debt of Canadians has reached a record high in recent years and increasing interest rates are making it impossible for some people to make ends meet. Housing prices have been going up precipitously in Canada and there are people across the country seeking ways to make a quick profit.
Manitoba officials warn that flippers offer a quick sale and pressure homeowners to not call a real estate agent so they won’t have to pay the customary fees to them. That also prevents homeowners from discovering the real value of their homes.
Get independent advice, say officials
The Manitoba Securities Commission has basic advice for those who are approached. It suggests that before selling a home, people consider independent advice from a real estate broker or lawyer, they should never sign blank documents or any documents without reading and understanding them. It adds that people experiencing financial hardships get advice from financial professionals that they themselves seek out such as credit counsellors, bank or credit union professionals.