Sunrise Homes admits to selling homes without legal clearance
A pre-construction housing project in Clearview, Ontario, has left more than 100 buyers facing financial losses after the developer entered receivership.
The collapse of the project, which was led by Sunrise Acquisitions (Stayner) Inc., has exposed risky practices within the company, including selling homes without legal approvals, leaving buyers facing significant financial losses.
Rayyan Shahid, one of the affected buyers, had paid $100,000 as a down payment toward his first home, hoping to move in with his growing family by 2025. Now, those plans have evaporated, along with his savings.
Sunrise entered receivership in February. Court documents reveal that homebuyers, like Shahid, who paid substantial deposits, are unlikely to see their money returned. The company spent all the deposits, leaving it unable to refund buyers. Some individuals stand to lose as much as $130,000.
Hussain admitted to selling homes in Clearview without securing the required legal approvals. Hussain told CBC Toronto that selling homes without registration was a "calculated risk" the company had taken for years.
"Usually, we register once we start construction, which is probably not the right way to do it. You have to register the time of sales," Hussain said in an interview with CBC. "We've been doing this practice for the last 15 years, 20 years probably."
Buyers are now demanding answers about where their money went, as no construction ever began at the site.
"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?"
Sunrise Homes has a history of financial difficulties. The company has been involved in other failed projects, including developments in Markham and Elmvale, both of which ended in receivership, leaving the builder owing millions.
In the Markham case, Hussain and his partner, Muzammil Kodwavi, were accused of misappropriating millions of dollars and providing inaccurate financial records. The Ontario Superior Court of Justice even referred to the company’s financial records as a "cooked book."
Despite these issues, Sunrise Homes remains licensed with the Home Construction Regulatory Authority (HCRA), though the agency is now inspecting the developer's operations more closely.
Toronto real estate lawyer Bob Aaron is among those calling for stronger protections for homebuyers, criticizing the lack of oversight.
Tarion, the provincial warranty corporation, acknowledged that Sunrise did not have the legal approvals required to sell or build the homes in Clearview. Tarion said developers operating without approvals can face penalties, charges, and enforcement actions.
A provincial spokesperson added that Ontario is committed to protecting consumers and plans to consult on proposals to address illegal building and selling practices.
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"The sale of these homes by Sunrise was not exactly a secret. It was advertised, it was promoted. It was promoted in print, it was promoted online," said Aaron. "Why wasn't Tarion protecting the public by putting a stop to marketing homes that didn't have approvals?"
In October, a judge approved the sale of the Clearview Township property to one of Sunrise’s lenders, Brexit Holdings. As part of the sale agreement, all purchase agreements with homebuyers were terminated, further dashing hopes of recovery for buyers like Shahid.
While Hussain has expressed interest in repurchasing the land and restarting the project, many are left with little faith in the developer’s ability to deliver.
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