PREDATORY BUSINESS
We have some interesting speakers attend our team meetings. As the Broker of Record, one of my main jobs is to make sure our team is up to date on what is happening in not only the local real estate market, but in other areas of life that can affect our clients.
I recently came across a number of articles about a rather nasty bit of business that is happening to Ontario homeowners in current day: home equipment rental scams.
As of March 2018, Ontario had banned unsolicited door-to-door sales of certain household appliances, namely furnaces, air conditioners and water treatment devices. The ink had barely dried on the new law, and certain less-reputable companies had already switched tactics, barely skipping a beat on bilking people out of millions of dollars.
With door-to-door sales off the table, these shady business practices have once again reared their heads in the form of unsolicited phone calls offering free service check ups, money-saving upgrades, and increasingly common, letting people know that they are missing out on energy rebates being offered by the province and municipalities.
Frequently targeted are vulnerable groups, specifically seniors and new immigrants. These insidious players are posing as ‘energy rebate’ companies, and who would want to miss out on massive savings, right? Of course, these too-good-to-be-true offers are exactly that.
I’ve witnessed these tactics first hand. We’ve had several calls from a company called Ontario Green Savings about free smart thermostats and energy rebates we may be missing out on. All it takes, they say, is a quick in-house questionnaire and a meeting with their representative. According to the salespeople, we could be missing out on thousands of dollars in rebates! Tempting as an offer of “free” money is, we always pass on these offers, especially when they are intentionally vague or aggressive in pushing for that free appointment.
There are several avenues where a consumer can be taken advantage of with these pitches.
Inviting them in for the free assessment allows them to gather information about you as the homeowner, and allows them access to your home’s HVAC systems. Of course, those systems will need to be replaced in order for you to qualify for the rebates, but not to worry, the energy savings will more than help cover the cost. They are aware of how much a high-efficiency system will cost, and will make it even more attractive by bundling it as a rental, like your water heater, and a service package.
We have dealt with many of these “rentals” in recent years that suddenly cost a homeowner 3-5 times the cost of the original equipment when the contracts need to be paid out prior to a sale. This past week, Dennis Crawford, a Stratford lawyer and founder of OntarioHVACscam.com, spoke to the Home Group Realty team about the next level of this scam – which is to register a security lien on the house without the homeowners’ knowledge or permission.
His website details how unscrupulous HVAC equipment sellers are taking advantage of a legal loophole in Ontario law that allows them to register liens on a home without the homeowner’s permission or knowledge.
As Realtors, we ask our clients for details about any rental or leased equipment they may have in their home when we list it for sale. If not caught early enough, these liens and rental contracts can cost homeowners many thousands of dollars to have them removed. The scammers know the liens will hold up the home’s closing, and they take advantage of the situation by charging an exorbitant cancellation fee – frequently tens of thousands of dollars.
How can consumers protect themselves?
Be wary of offers that seem too good to be true – especially if they are seeking out you. Despite how urgent the salespeople may make the situation seem, there is absolutely no reason these kinds of decisions – upgrading your household equipment – need to be made immediately. If you receive a call like this, a quick Google search will likely reveal nefarious activity in the form of news articles and Better Business Bureau complaints. Or, discuss the pitch with someone you trust. Even better, reach out to your HGR REALTOR® – our team members are versed in what these scams look like and what to do if you or someone you love has been targeted by them. It’s also important to know your rights when signing or cancelling a contract. In Ontario, there is a 10 day cooling off period when consumers sign contracts in their home for HVAC and other home appliances and services.
With so many of our older generation still living in their homes, they are susceptible to these predators. We make it part of our practice that any tradespeople or service providers we recommend to our clients are local and have real, positive experiences with our team members and clients.
If you have any questions about this topic, please reach out to our team.
THE PAST WEEK IN THE GUELPH REAL ESTATE MARKET
Take a look at the full key week comparison:
FEATURED PROPERTY
20 Kingsley Court, Guelph
5 BED / 3 BATH / 3,422 SQFT
Stunning & stately family home in a truly special location. Generous layout, with formal dining and living rooms plus a cozy family room and light-filled sunroom overlooking the backyard. Fantastic master suite with double closets and private balcony, plus 3 more bedrooms and a spacious office. Situated on a 1/3 acre lot in Riverside Park, backing onto Guelph Country Club – sprawling and beautifully landscaped, with in-ground pool.
Matthew Webster (519) 731-6464
