The Ontario Government has recently passed Bill 200, the Homeowner Protection Act, 2024, which received Royal Assent on June 6, 2024. This legislation introduces significant changes to the handling of Notices of Security Interests (NOSIs) in real estate transactions in Ontario, which consumers, real estate agents, and mortgage brokers need to be aware of.
What is a NOSI?
A NOSI is an encumbrance registered on the title for certain personal property, such as rental items like furnaces or air conditioning units which is very common in the Windsor real estate market. This system ensured that any outstanding rental agreements or secured interests were clearly visible and identified to potential buyers or lenders. As a result, rental items secured by a NOSI had to be resolved before the property could be sold or refinanced – think hot water heaters, furnace or A/C units, water treatment equipment etc.
Legislative Amendment
The Homeowner Protection Act, 2024, amends the Personal Property Security Act (PPSA) to prohibit the registration of NOSIs for consumer goods in land registry offices. This change means that any existing NOSIs for consumer goods, effective before June 6, 2024, are now deemed expired and can be deleted from the title.
Implications for Homeowners
When listing your home for sale in Windsor & Essex County, ON, or elsewhere, it is important to ensure that your real estate agent is aware of all rental equipment that you have on the property as they remain secured as personal property. To prevent potential complications, it’s essential to verify that there are no undisclosed rental agreements when you sell your home. Keeping copies of your rental agreements is important to ensure no details are missed in your listing or purchase agreements.
Engaging Experienced Real Estate Agents & Real Estate Lawyers
Working with experienced real estate agents and real estate lawyers can help avoid complications during the transaction to protect both the buyer and the seller from any issues that may arise post-closing.
Learn more about Bill 200, Homeowner Protection Act, 2024, and how it affects your home buying or selling journey in Windsor and Essex County, ON, or beyond.
