BILL 200

By Todd McCarthy MPP Durham The current legislative session was recessed on June 6, 2024, with Her Excellency Edith Dumont, the Lieutenant Governor of Ontario, providing Royal Assent to several Government Bills, including legislation that I am proud to say sets an elevated standard for protections of homeowners and homebuyers in Canada. Bill 200, the Homeowner Protection Act, 2024, bans the registration of Notices of Security Interest (NOSIs) for consumer goods on the Land Registry and deem NOSIs for consumer goods currently registered on title to be expired. It also provides additional protections for new homebuyers by establishing a 10-day cooling-off period for buyers of new freehold homes. Notices of Security Interest are registrations that may be made on the land registry system by a business when it rents, finances or leases goods such as a water heater or furnace installed on a property. While NOSI registrations are intended to help a business protect their interest in those goods, investigations have revealed bad actors use NOSIs to extort exorbitant payments from consumers, particularly seniors, newcomers and vulnerable Ontarians. These scams can sometimes involve leveraging the NOSI, or multiple NOSIs, to secure high-interest mortgages on the property, which can ultimately lead to the homeowner losing their property. The changes do not eliminate a business’ security interest in the fixture or invalidate their contract with the consumer. If the consumer defaults on payment, the business may still be able to repossess the fixture and seek repayment through other means, such as through the courts. This legislation further strengthens consumer protections for homeowners and buyers by establishing a 10-day cooling-off period for purchases of new freehold homes, allowing buyers to cancel agreements without penalties. This provides buyers with time to fully understand their commitments and back out if they choose. "This legislation takes historic action in protecting the financial well-being of Ontario’s seniors. Through the banning of Notices of Security Interest, vulnerable Ontarians including seniors are assured to see the government taking proactive measures to prevent predatory behaviours from bad actors” said Laura Tamblyn Watts President, and CEO of CanAge. “Our organization commends the government for taking decisive action to address this problem and make Ontario a safer marketplace for senior homeowners. " The province also intends to further strengthen consumer protections for condominium communities and people buying new freehold homes by ensuring public disclosure of builder cancellations of purchase agreements for new freehold homes to promote transparency, protecting consumers from unreliable builders. The province intends to consult in the coming months on changes to support the implementation of the cooling-off period for purchases of new freehold homes, improve access to information and transparency for buyers of new freehold homes, and better support condo communities. I am proud of is a landmark piece of legislation – the first of its kind in Canada – to protect consumers from fraud and bad actors. By banning the registration of consumer NOSIs on land titles, we're putting an end to the exploitation that has targeted our elderly and most vulnerable residents. Moreover, we’re giving Ontarians the crucial information and time they need to confidently make one of the biggest financial decisions of their lives through our enhanced protections for new homebuyers. The Homeowner Protection Act is indeed a testament of our government’s unwavering commitment to building a safer, fairer, and stronger economy, now and for future generations.