HALIFAX -- A man is facing charges after a vehicle crashed into a home in Sydney, N.S., leaving one passenger dead and two others injured.

Cape Breton Regional Police first spotted the vehicle on Prince Street around 1:30 a.m. Monday.

Officers believed the vehicle was stolen and had the wrong licence plate.

They tried to stop the vehicle, but police say the driver quickly sped away, and they called off the pursuit on Stable Drive, near Ferry Street.

Police spotted the vehicle turning off Ferry Street onto George Street, but lost sight of it near the Irving gas station.

They found the vehicle minutes later after it crashed into a home near the corner of Byng Avenue and George Street.

Neighbour Darren Andrea and his family watched it all unfold from the window of their home. He says the vehicle was on two wheels before the driver lost control.

"I heard a loud rev of an engine, squealing of the tires, and then a massive 'boom' ... into something," recalls Andrea. "I ran out into the street with just about everyone in the neighbourhood and saw the car smashed into the house two doors down from me."

No one inside the home was injured, but a male passenger was found dead inside the vehicle.

The male driver and two female passengers were taken to hospital with non-life-threatening injuries.

"It was pretty messy," says Andrea. "I overheard one of the officers saying that somebody was trapped. Beyond that, they helped one girl out by smashing the window to get her out."

Police say the driver was arrested and charges are pending.

Cape Breton Regional Police are investigating the collision. Because the crash resulted in injuries and a death following a police pursuit, the matter has also been referred to Nova Scotia’s Serious Incident Response Team, which is responsible for investigating serious incidents involving police in the province.