$215,000 IN RESTITUTION ORDERED FOR HOMEBUYERS FOLLOWING ILLEGAL NEW HOME SALES

Exquisite Bay Development Inc. continued selling new homes in Mississauga after licence renewal was refused

TORONTO, Aug. 27, 2026 /CNW/ -- The Home Construction Regulatory Authority (HCRA) has secured $215,000 in court-ordered restitution for homebuyers following the prosecution of Exquisite Bay Development Inc. (Exquisite Bay) and its Director, Ahmed Raza Yousuf. The company continued selling new homes after their licence renewal was refused in March 2021.

On June 19, 2026, Exquisite Bay and Yousuf pleaded guilty to four charges of selling new homes without an HCRA licence. In addition to the $215,000 in restitution ordered to address the homebuyers' losses, Exquisite Bay and Yousuf were ordered to pay a total of $18,750 in fines and victim surcharges.

"In Ontario, individuals and companies must be licensed by the HCRA to build or sell new homes," said Wendy Moir, the HCRA's Chief Executive Officer and Registrar. "When a licence renewal is refused, the builder or seller is no longer permitted to engage in any activities involving building or selling new homes, including entering into or assigning agreements of purchase and sale. These requirements exist to protect homebuyers from the risks of dealing with someone who is not authorized to operate."

The HCRA's investigation began after receiving complaints from purchasers related to a residential development in Mississauga. It found that Exquisite Bay entered into or assigned two agreements while unlicensed as a new home seller.

In one case, purchasers signed an agreement of purchase and sale for a pre-construction home and paid a $200,000 deposit. In another, purchasers sought to assign their agreement to another homebuyer, and Exquisite Bay charged them a $15,000 assignment fee.

Despite collecting these payments, Exquisite Bay never built the homes after selling the development lands and refused to return the purchasers' money. The HCRA pursued legal action leading to the charges, convictions, fines, and court orders requiring repayment to the affected purchasers.

"This case shows why licensing matters," said Moir. "When a builder or seller continues to operate after its licence has been refused, purchasers can be exposed to serious financial risk. The HCRA will continue to take action to ensure only those who meet the requirements operate in Ontario."

Homebuyers can use the Ontario Builder Directory to verify that a builder or seller is licensed before entering into any agreement. The Builder Directory allows homebuyers to access important, up-to-date information including licensing status, past projects, and regulatory history to help them make informed decisions when purchasing a new home.

About the HCRA

The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.

In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory -- the authoritative source of background information about each of Ontario's 7,000 new home builders and sellers.

SOURCE Home Construction Regulatory Authority (HCRA)

Jerome Bennett, [email protected]