'In a second, all our dreams turned into a nightmare': Quebec home buyers lose millions as developer files for bankruptcy
Quebec's Home Builders' Association has filed a police complaint against a Laval developer who went bankrupt last week, but not before taking at least $17 million in deposits from prospective home buyers.
Lisa Alahaydoyan is one of those buyers.
Her plan was to have a Laval home torn down and rebuilt into her dream one with a two-car garage and possible pool.
"It was our dream home," she said. "We worked meticulously to make sure every single room was the way we wanted it."
She and her husband dealt with a well-known contractor called Bel-Habitat Incorporated that promised delivery by January.
Afarin Pouroskouei had the same plan for her family on the adjoining plot.
"We checked with the previous customers, we went inside their homes we checked their houses," she said. "They were satisfied. Then we checked with other brokers and also with the banks and they said no problem, this company is reliable."
Both fronted the contractor around $200,000 to get their respective projects off the ground, but they say there were red flags as the project was advancing.
Delays, paperwork issues, and rumours of unpaid bills started to pop up, and just when they were about to transfer ownership of the land to themselves, the contractors filed for bankruptcy.
Both families lost their entire deposits, and they were not alone.
At least 100 Laval families found themselves in the same situation with the same company; often after years of saving for a down payment.
Luc Perrier is president of Bel-Habitat. CTV News visited his office, which doubles a showcase house, but nobody answered the door.
According to the buyers, no one has seen him since he declared bankruptcy.
The future homeowners were suspicious and say Perrier encouraged his clients to increase their deposits to 20 per cent of the purchase price leaving dozens ruined.
"In a second, all our dreams turned into a nightmare," said Pouroskouei.
There is a glimmer of hope, however, as in Quebec, new homeowners are protected by what is called the homebuilders' construction warranty monitored by an industry oversight group.
However, it only pays back up to $50,000.
The Homebuilders' Association felt that there were enough questions raised that they've now filed a complaint to the police against Perrier.
LISTEN ON CJAD 800 RADIO
Home buyers lose millions after developer files for bankruptcy & disappears
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.