SYDNEY, N.S. — Varunkumar Patel thought he was investing in his future and helping international students in need of housing when he bought a home in Sydney. 

The Indian man, who is a registered nurse, immigrated to Canada five years ago to work in health care in Ontario. He currently lives in London and owns the condominium he resides in. 

After learning about the housing shortage for students in the Cape Breton Regional Municipality, Patel decided to invest his savings into a property in Sydney. 

The three-bedroom home at 69 Rockdale Ave. seemed like a good choice to Patel, who was given a virtual tour by the realtor involved in the sale of the property. 

It looked clean and freshly painted, with some new windows and what looks like a new roof. 

Patel purchased the property for $165,000 and put a $37,000 deposit on it. At the time, there were tenants in the home who moved out in August 2022, said Patel. 

In mid-August, Patel came to see the property and clean it for new tenants. He was surprised to find water in the basement and the furnace looked corroded. 

“I was shocked,” said Patel during a phone interview on June 22. “I’m like, is this how it should be because I live in Ontario and we have really good basement in the houses right now…and I am not familiar with the radiator (heating) in the room, like, you know, in the living room there is a (hot water) radiator which provides the heat.” 

Unsure if this was how properties in Nova Scotia should be, Patel called a repair company and was told to keep the sump pump in the basement on. Patel said repairs were done and everything was working well before he returned to Ontario and rented the home to some students. 

The students had moved out by February and the property remained empty until June, when Patel rented it to a family in Ontario who wanted to move to Cape Breton. 

Patel said he was aware of some issues at the home which he discussed with the new tenant and worked out a deal to have the tenant, Matt Rourke, do the repairs. 

However, the home needs more than minor repairs and Rourke left after about a week; a week he spent sleeping in a tent outside because the condition of the home didn’t seem safe. 

Water damage on the floors due to the pipes in the water radiators breaking has resulted in what appears to be black mould or mildew. 

There was a leaking pipe in the ceiling in the living room which has left the ceiling soggy. It moves at places when pushed on and crumbles at the spot Rourke opened up to fix the leak. 

Rourke, a contractor, put in a new sump pump that properly discards the water in the basement but was appalled by the state of the furnace which is corroded. 

He also believes there are electrical issues with the property, which currently has no heating system. 

Fast facts

Housing sales in Nova Scotia in May 2023

• 1,205 units sold. Down 17.6 per cent since May 2022

• Home sales 8.2 per cent below five-year average

• Home sales 1 per cent below 10-year average

• Home sales totalled 3,925 from January to May. Down 28.7 per cent from January to May 2022

• Benchmark price single-family home: $395,000. Down 2.8 per cent from May 2022

• Average price of homes: $485,175. Increase of 1.2 per cent from May 2022

• New listings: 1,742. Down 20.9 per cent from May 2022

• Active residential listings: 3,113 units at end of May. Increase of 14.1 per cent from May 2022

 

Source: Nova Scotia Association of Realtors MLS Statistical Report

Since purchasing the home for a rental property, Patel said he’s invested about $30,000 more in repairs. The quote he was given for a new heating system is around $21,000 and some windows are needed.

The drywall on the ceiling in the bathroom has started to fall off, crumbling due to apparent water damage, and the exposed wood looks to be wet and rotted. 

Patel didn’t get a home inspection before purchasing the property because he thought what he saw in pictures and the virtual tour was what he was getting — an OK home that would be better when upgraded but still good to be rented.  

It wasn’t until Rourke explained to him in detail over many phone and text conversations that Patel really understood the true condition of the home and that he couldn’t rent it until extensive repairs were done. 

“It wasn’t a good idea (that) I purchased this house. So, I do regret that after purchasing that house,” Patel said. 

“Now I have a mortgage ongoing and everything is in bad shape … I want to fix the house but the thing is, it’s pretty expensive.” 

Patel would sell the property if he could recover some of his money, but at this point, he realizes he might not even get the amount left on his mortgage without investing in the repairs. 

Be prepared

Realtor Roger Burns, who is the director for Cape Breton of the Nova Scotia Association of Realtors, said Patel made a big mistake when he didn’t get a home inspection done. 

“I don’t care if it’s $20,000 or a million dollars, if you want to send the money and you don’t get it (inspected) to know what you’ve got, you’re starting off on the wrong foot,” Burns said. 

The Cape Breton Post tried to contact the realtor Patel said sold him the property but was unable to reach them before publication time. 

Burns said he has worked with the realtor in the past and believes the realtor is one who would disclose all issues with a property to a buyer if he was aware of them. 

However, he said an unethical realtor might not disclose some things — like a death in the home or flooding problems — which could reduce the property value or appeal. 

Over his decades-long career in the real estate industry in Cape Breton, Burns said he hasn’t heard of many realtors who would do this. 

There is also the possibility that the seller didn’t disclose the full property history to the tenant, which the realtor wouldn’t know of at the time of showing and sale of the unit. 

This has happened only once or twice to Burns over his 32 years in the business. 

Burns stresses home buyers need to make sure they do their due diligence before buying through inspections and having someone walk through the property. 

“Don’t trust me (the realtor). I’m not going on the hook for you. I’m not a furnace guy. I’m not an electrician,” Burns said. “If the gentleman said, look, I like you. I trust you. I’m gonna send my brother, Jimmy down. I’ll take his and your word. Roger Burns would say, you know what bud? You take your brother’s word. Don’t take mine. I’m not an inspector and I’m not going on the hook for you … spend four or $500 with a certified inspector, let them tell you, you come back to them.” 

Housing sales in Cape Breton

• Sold between $139,000-$218,000

• 113 in 2021

• 92 in 2022

• 70 so far in 2023

 

Source: Nova Scotia Association of Realtors MLS Statistical Report

Matt Dauphinee, president of the Nova Scotia Association of Realtors, has been a realtor in the Halifax Regional Municipality for 12 years. To the best of his knowledge, he’s never been misled by a seller and echoes Burns’ sentiments on the importance of getting home inspections and finding out the history of the property.

“Buyers … can ask for a property disclosure statement from the sellers as well as they can perform home inspections on the property with anyone of their choosing,” he said. “Inspections could range from bringing in a home inspector to a licensed electrician to someone who can do sewer, well, septic — any type of inspection that they were concerned about the property.”

He also said members in Nova Scotia adhere to the code of conduct provided by the Canadian Real Estate Association.

“It’s always in your own best interest to do all the due diligence that is afforded to you in the transaction,” Dauphinee said.