Multiple people who bought new home builds in Edmonton from 3volution Homes Group say construction has stalled but they’re on the hook for mortgage payments.
Olamide Omotosho stands in front of his unfinished house in northeast Edmonton.
Court documents show tradespeople in the Edmonton area are seeking more than $180,000 in damages from the builder for unpaid invoices related to 3volution houses. No statements of defence have been filed. The situation has become dire for four homebuyers, who told CBC they can't afford to pay rent and make mortgage payments at the same time.
Kineeh said the builder has not been returning his calls or text messages and the situation has strained his relationships with his wife and children.Godfrey Kineeh owns a 3volution house in the Fraser neighbourhood. He's been waiting to move in for more than two years.During their home purchases, both Omotosho and Kineeh worked with real estate agents and with Fort Law, which has offices in Fort Saskatchewan and Edmonton.
Kineeh and his daughter recalled signing mortgage documents in parking lot with a man who identified himself as a Scotiabank employee. Hans Aladejebi, Fort Law's lead attorney, told CBC News the builder referred the men to his law office and offered to pay for their legal fees."I was just under the impression that there were a few items to be finished," he said.
The house Omotosho bought was already partially built. The first sale agreement with 3volution he signed said he would receive possession by July 8, 2021. For months, Omotosho said, the builder transferred him money for mortgage payments — since the house was unfinished — but those payments stopped coming a few months ago.Kineeh said the company's transfers to him stopped as well. Since the mortgage is in his name, he is responsible for making payments, but has not made the last five.Both men said they told Edmonton police about the situation, but did not file reports after being told their matters were not criminal.
Garas, the spokesperson for Scotiabank, said the bank can't comment on individual customer matters for privacy reasons but takes potential fraud cases very seriously. He said the matter has been referred to the Edmonton Police Service and regulatory bodies.
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