Calgary, Alberta—As Canada’s mortgage rules have tightened, the Real Estate Council of Alberta (RECA) acknowledges consumers may consider alternative financing options to purchase or sell real estate.
RECA urges vigilance, as incidents of fraud or misleading behaviour around seller financing are on the rise in Alberta.
Seller financing, also sometimes known as a vendor take-back mortgage, is a type of mortgage in which the seller lends funds to the buyer to facilitate the purchase of a property. “Rent to own” agreements fall into this category.
“Seller financing is an acceptable alternative to securing financing through a traditional lender,” said Bob Myroniuk, Executive Director. “However, when entering a deal that involves seller financing, we’re urging consumers to be vigilant, and understand exactly what they’re getting into.”
As the governing authority for real estate and mortgage brokerage professionals in Alberta, RECA asks consumers to consider the following advice and red flags:
More information and specific scams can be found on RECA’s website. Find out more about mortgage fraud in general with our Mortgage Fraud Awareness and Prevention resources.
If you suspect a seller or a real estate professional is involved in fraud, contact us at firstname.lastname@example.org, or submit an anonymous tip using our online fraud tip submission form.
The Real Estate Council of Alberta (RECA) is an independent, non-government agency, responsible for governing real estate, mortgage broker, property management, and real estate appraisal industry professionals under Alberta’s Real Estate Act. RECA’s mandate is to protect consumers and to provide services that enhance and improve the industry and the business of industry professionals.