Introduction

In a startling development, Saskatchewan's consumer watchdog is launching an investigation into Regal Property Developments Ltd. and its affiliate Regal Properties De Mexico S. de RL de CV—collectively branded as Caban Condos—a company based in Saskatoon purportedly selling luxury vacation homes in Mexico.

Investigation Initiated

On Tuesday, the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) issued a public plea for information concerning the activities of these companies. Trouble has been brewing as neither owner Mike Delaire nor Caban Condos holds the necessary registration to engage in real estate transactions in Saskatchewan.

Buyer Complaints

A recent exposé by CTV News Saskatoon and the Investigative Journalism Foundation (IJF) unearthed a troubling trend of complaints against the firm. Victims allege that they were subjected to aggressive sales tactics and faced extensive construction delays. These findings are particularly alarming, with reports from 11 buyer groups across North America claiming they invested their life savings or retirement funds into deposits for Caban condos.

Construction Delays

Despite having accepted deposits exceeding US$150,000 from buyers, the company has only managed to complete one out of four planned buildings, with most projects languishing years behind schedule. Customers are becoming increasingly frustrated as the company reportedly fails to return promised funds, prompting some individuals to pursue legal action.

Community Action

Further complicating matters, many aggrieved customers have banded together online, creating communities to share their experiences and caution potential buyers, revealing a desperate move to warn others before they fall into the same trap.

Company Response

In response to inquiries about the growing concerns, Mike Delaire attributed construction delays to complications with a primary contractor in Mexico, escalating construction costs, and disruptions caused by the COVID-19 pandemic. He insists that his company expanded too quickly but vehemently denies any fraudulent activity, assuring that all projects will be completed within eight months and that titles will be delivered to buyers.

Delaire's Claims

Delaire also stated that dissatisfied customers are spreading what he calls 'conspiracy theories' and 'outright lies' about the company, raising questions about credibility on both sides.

Implications of the Investigation

As the FCAA’s investigation unfolds, the implications for the buyers who have already placed deposits remain uncertain. The consumer watchdog continues to urge anyone with information about Caban Condos or Mike Delaire to reach out to the FCAA's Insurance and Real Estate Division.

Advice for Potential Buyers

As a crucial advisory, the FCAA has recommended that prospective buyers of real estate outside the province confirm that the seller is registered with the Saskatchewan Real Estate Commission. They stress the importance of thoroughly reviewing any contracts and seeking independent legal counsel to navigate these high-stakes transactions while minimizing deposit amounts to mitigate potential losses.

Conclusion

This investigation serves as a stark reminder to consumers—vigilance and due diligence are essential when venturing into real estate investments, especially outside one’s local jurisdiction!