117 homebuyers out millions, as Ontario builder admits to selling homes without legal approvals
CBC
More than 100 people are out tens of thousands of dollars each, after the developer of a pre-construction home project in Clearview, Ont., entered receivership.
Rayyan Shahid and his wife, who are expecting their first child next month, were looking forward to moving into their dream home next year at the Clearview site near Wasaga Beach, about 150 kilometres north of Toronto. But that won't be happening.
The first-time homebuyer says that since December 2021, he's paid $100,000 of his life savings as a down payment on the home, which was supposed to have been built by Sunrise Acquisitions (Stayner) Inc. by April 2025.
That Richmond Hill-based developer entered into receivership on the project in February. As a result, court documents show 117 homebuyers stand to lose about $4 million collectively, with some individuals losing as much as $130,000.
Shahid's on the hook for about $15,000.
"It's really devastating," he said. "It's heartbreaking … One thing is not getting the house, then the other thing is losing the money also."
This isn't the first time a Sunrise Homes project has become insolvent. The builder has also admitted to CBC Toronto that it's been selling homes without getting legal approvals to do so for years.
There have been previous allegations made against the company for misappropriation of funds involving a Markham project, and it's in debt for tens of millions of dollars related to another project in Elmvale, Ont. That leaves buyers like Shahid, as well as a Toronto real estate lawyer, calling for better protections for homebuyers.
Court documents reviewed by CBC Toronto show Sunrise Acquisitions (Stayner) Inc. spent all the deposits, which means it isn't in a position to return the money to homebuyers. The company was not legally obligated to retain any funds.
Shahid says his biggest question is where the money went — especially given there's been no construction of the homes people put down payments on.
"It's not like they started construction and they had to leave it in the middle," Shahid said.
"It's still a barren land. So where did all the money go?"
Sajjad Hussain is the CEO of Sunrise Homes, which develops housing projects under various companies using similar names that list Hussain and Muzammil Kodwavi as directors.
One of those companies was Sunrise Acquisitions (Stayner) Inc., which entered receivership earlier this year for the Clearview Township project.
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