Tradespeople and homeowners are frustrated and out thousands of dollars after Welcome Homes Ltd., which constructs houses in the Warman, Sask., area, shut down.
Painter John Kabatow said he’s awaiting $4,900 owed to him for two interior paint jobs his crew did in December 2016.
“I’d just like to get paid and get on with business and with life,” Kabatow said.
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Between his two businesses, Caveman Stone Products Inc. president Menno Zacharias told Global News that Welcome Homes owes him $10,000.
Kabatow and Zacharias are both considering partnering with other contractors, in an effort to share potential legal costs the Welcome Homes situation.
Several people commented in a Warman-area Facebook group, expressing their disappointment with the homebuilder.
Many people leaving comments said they’ve been unable to contact the owners, Dean Emde and Nacy Emde.
Global News couldn’t reach either for comment, but a letter to creditors obtained by Global News confirmed the company’s fate.
“It is with deep regret that I inform you that (Welcome Homes) has ceased operations due to becoming insolvent,” the letter from Welcome Homes’ directors reads.
The author states the company has no funds and “insufficient realisable assets” and is voluntarily liquidating.
“I am not in a position to fund this personally, having now lost my livelihood.”
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A lack of walkthrough inspections after a year of home ownership was a recurring problem for the Facebook group’s members. Without walkthroughs, some homeowners have paid out-of-pocket to repair any defects they thought would be covered by warranty.
Welcome Homes isn’t listed as a member of the New Home Warranty Program of Saskatchewan or the Saskatoon & Region Home Builders’ Association (SRHBA).
The SRHBA requires walkthrough inspections after a year for all of its members.
“If a homeowner is using a builder that’s a member of our association, that’s something that we hold very highly as important for the industry and all of our members have third-party warranty,” SRHBA CEO Chris Guérette said.
The SRHBA provides tips to homeowners in its ‘Get it in Writing’ online consumer information service.
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