A number of prospective homeowners in Southeastern Manitoba seem to have been left in the lurch by a company called Fine Haus Building Co.

Developer Cornell Friesen says the situation came to light last week in Niverville when a couple found out that the lot they put a down payment on with Fine Haus was still owned by Fifth Avenue Estates.

"One of the people that purchased a lot from Fine Haus called my manager last week and asked why we were holding up the building permit process with the town and he said 'well we are not' and then he said 'well why didn't we get a building permit, why didn't you OK it.' and he said 'cause we own the lot'."

Cornell Friesen from Fifth Avenue Estates Friesen says Fine Hause had agreed to purchase 21 lots in Fifth Avenue Estates then re-sell them with house packages. He notes according to Fine Haus, all 21 lots have been sold to clients even though they have only taken possession of eight and Fifth Avenue Estates still owns 13.

Friesen says of the eight that Fine Haus has taken possession of, none of the builds are complete and Fine Haus appears to have pulled out without paying many of their sub-contractors. He notes they are hopeful that Niverville’s reputation won’t take a big hit.

"I know the narrative that happens afterward, they talk on the street and paint everyone with the same brush and that was our concern but a lot of our builders are part of the Manitoba Home Builders, a lot of silver and gold awards at the parade of homes. We have been the fastest-growing, percentage-wise, community in Canada for 15 years, I have a good reputation and I am assuming that people are intelligent enough to figure out that all the builders aren't all the same."

With all of their clients, Friesen says they ask that lawyers be involved and if the client refuses they must sign off that a lawyer was recommended. He notes if you see an ad online for a new home you can own at $200,000 and the offer seems too good to be true, it probably is.

Friesen says they are working to help the affected home buyers recoup some of their losses.

"Those people that have 10 to 13 thousand dollars down, we are reducing their lots so that if they lose any money on this, then maybe only two or three thousand dollars. We have a builder that is going to be purchasing the remainder of the lots, very reputable, been building homes for some 35 or 40 years, he is from the Niverville area and he is going to be working with these people."

Meanwhile, Niverville CAO Eric King says the town has received a number of complaints already. Unfortunately, he notes there is not much he can do for them.

"There is not a lot of ability for us to say hey we can put you on a blacklist, that doesn't exist in the powers that we have. You can't have company X all of a sudden not allowed to have a permit in Niverville. If you meet all of our building requirements, building codes, and you pay all of your permits, there is nothing that can stop someone from building."

King says they have been referring people with complaints against Fine Haus Building Co. to the Better Business Bureau.

There have also been a number of similar complaints against Fine Haus in the RM of Hanover as well.