BY: Charlie Fairbank
The Ontario government’s bill banning notices of security interest (NOSI) on consumer goods was fast-tracked and received Royal Assent on June 6, 2024. This bill follows a private member’s bill to ban NOSIs and is co-sponsored by Official Opposition Critic for Consumer Protection, MPP Tom Rakocevic. The Homeowners Protection Act bans the registration of NOSIs on the Land Registry and current NOSIs registered are now expired. It also protects people buying new homes by providing a 10-day cooling-off period, allowing buyers to cancel agreements without penalty.
A notice of security interest (NOSI) is a type of lien that can be placed on a property’s title by a business that leases out heating, ventilation and air conditioning (HVAC) systems to the homeowner. NOSIs are often exploitative and can lead to people losing ownership of their homes. Criminals and organizations often use NOSIs to target homeowners, especially seniors. They leverage the financing or leasing of home appliances against the home's title to get paid.
Often, a lien isn’t discovered until the property is attempted to be sold or refinanced. According to the Land Registry of Ontario, there are 350,000 consumer and commercial NOSIs registered in the province.
NOSIs have been an issue the Opposition has been advocating to ban for some time. MPP Tom Rakocevic held a packed town hall on May 1, 2024, at St. Basil-the-Great College School to discuss the issue with the Toronto Police Service and the Advocacy Centre for the Elderly (ACE), and other issues of public safety affecting the community.
Without pressure from the Opposition, the Progressive Conservatives likely wouldn't have passed their bill adopting many measures the ONDP proposed before the legislature rose for summer break. The government bill was tabled on June 2, 2024, and in a rare move, passed the committee and third reading through the collaborative effort of all MPPs. The legislature will resume on October 21, 2024.
If you or someone you know believes they have a notice of security interest on their property, please contact MPP Tom Rakocevic for Humber River-Black Creek at his office phone number: 416-743-7272 or via email at TRakocevic-co@ndp.on.ca.