Warning for Older Homeowners

A troubling pattern has surfaced in Québec’s real estate market, and it should serve as a wake-up call for homeowners across Canada—especially older Canadians who may be more vulnerable to financial exploitation.

According to an English-language report in Real Estate Magazine, Québec’s real estate regulator—the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ)—has seen a sharp increase in disciplinary cases involving brokers who buy homes directly from their clients, or arrange for a sale to a co-conspirator, at below-market prices, only to resell them quickly for a profit. In one documented case, a broker made nearly half a million dollars by flipping two homes purchased from clients he was supposed to represent.

These aren’t isolated incidents. The OACIQ says complaints related to conflicts of interest jumped from about 31% in 2021 to 43% in 2022 before corrective measures were introduced. However, cases of financial abuse in real estate transactions continue. Québec seniors’ group Réseau FADOQ has condemned the practice as a form of “financial exploitation,” calling for stronger oversight and public awareness.

Why CARP Members Should Pay Attention

While this wave of misconduct has been reported in Québec, similar risks exist in every province. Many older homeowners trust long-standing relationships with real estate professionals—yet few realize how easily a conflict of interest can arise when the person advising you is also the one buying your home.

Home equity is often a senior’s largest financial asset. Losing a portion of that value through deceptive or unethical practices can be devastating—undermining financial security, housing stability, and dignity in retirement.

This is just another example in a long list of of financial abuse opportunities that pose a growing threat to older Canadians and often goes unreported or unrecognized.

Why Seniors May Be Especially Vulnerable

Unscrupulous agents—licensed or otherwise—can take advantage of seniors’ trust, isolation, or unfamiliarity with today’s fast-moving housing market. Some tactics include:

• Building trust through familiarity: Agents or individuals posing as helpful neighbours or friends may offer to do chores, provide rides, or assist with errands, gradually building a sense of comfort and reliance.
• Gaining influence through “friendly advice”: Once trust is established, the individual positions themselves as a trusted advisor—encouraging the senior to sell their home, often under the guise of helping them “cash in” or “downsize.”
• Misrepresenting market value: Many seniors are unaware of how much their home is truly worth in today’s market. Fraudsters can make it sound as though they are getting top dollar when, in fact, the advised sale price is well below market value.
• False credentials and private sales: In some cases, these homes are sold privately or as For Sale by Owner (FSBO) transactions, through someone claiming to be an agent but who is not properly licensed or regulated. This means the senior has little to no protection if the sale goes wrong.

These forms of manipulation can occur gradually and often appear as friendly assistance—making them especially difficult for families and friends to detect.

Regulations Exist—but So Does the Risk

Every province has a regulatory framework intended to prevent exactly this kind of abuse. Real estate regulators—like the OACIQ in Québec, the Real Estate Council of Ontario (RECO), and the BC Financial Services Authority (BCFSA)—require licensed professionals to avoid and disclose conflicts of interest, and to act only in the client’s best interest. Québec, for example, has now banned double representation, where a broker represents both buyer and seller. Ontario’s Trust in Real Estate Services Act also strengthens rules for disclosure and transparency.

But rules alone aren’t enough. Detection and enforcement remain difficult, especially when transactions happen privately or when an older homeowner doesn’t realize they’re being misled. Many of the most harmful cases involve licensed agents who appear legitimate. Others involve unlicensed individuals posing as professionals—beyond the reach of regulators.

That’s why CARP is urging older homeowners, and their families, to stay alert, ask questions, and verify credentials before making any property decisions.

CARP’s Message: Know Who’s Really Representing You

• Demand independence. Your broker should represent you, not also act as a buyer.
• Get a second opinion. Ask another agent or appraiser to confirm your home’s fair market value.
• Take your time. Be cautious of anyone urging you to sign documents or close quickly.
• Review the paperwork. If anything feels confusing, seek advice from a trusted family member, lawyer, or financial advisor.
• Report concerns. If you suspect misconduct, contact your provincial real estate regulator or consumer protection agency.

Be Vigilant, Protect Your Equity

CARP continues to advocate for stronger protections against financial abuse of older Canadians—whether it occurs in banking, investment advice, or real estate transactions. This case out of Québec highlights why consumer safeguards and public awareness are so important.

We support the call from FADOQ to strengthen deterrence measures in Québec’s proposed Bill 92, including higher penalties for brokers found guilty of misconduct when the victim is aged 65 or older, and mandatory reporting of suspected financial abuse in real estate transactions. CARP echoes that message nationally: penalties for those who prey on seniors must be swift, public, and severe. Canadians in every province deserve equal protection from exploitation in the housing market.

Our call to members: Be vigilant. Ask questions. Confirm credentials. Your home represents decades of hard work and financial security—don’t let anyone talk you into giving it away for less than it’s worth.

We call on all real estate regulators across Canada to monitor for similar patterns and strengthen enforcement to ensure homeowners—especially older ones—are not taken advantage of by those they trust most.

CARP is Canada’s largest advocacy association for older adults, working to protect financial security, strengthen healthcare, and end ageism in all its forms.
Join us at www.carp.ca/join and add your voice to the fight for fairness and dignity for all Canadians as they age.