by LAWPRO

The Ontario Government has passed Bill 200, the Homeowner Protection Act, 2024, in the Legislative Assembly of Ontario, which received Royal Assent on June 6, 2024.

The Personal Property Security Act was amended to specify that a notice of security interest (NOSI) may not be registered in a land registry office with respect to collateral that is consumer goods, except as provided by regulations that may be made by the Minister responsible for the Act’s administration.

Any NOSI with respect to collateral that is consumer goods, or extensions of such notices, that were in effect immediately before the day the Bill received Royal Assent (June 6, 2024) are deemed to have expired on that day.

Accordingly, a NOSI or extension notice respecting collateral that is consumer goods that is deemed to have expired, or that expired before the day the Bill receives Royal Assent, may be deleted from title.

The Registry Office has released Bulletin 2024-07 explaining how to remove NOSIs from title.

Risk Management Considerations

Although the NOSI can no longer be registered on land, the debt obligation remains and recovery may be pursued by other means, including starting legal action.

Lawyers should consider doing a PPSA search to determine whether there are any fixtures that are rented and verify the agreement of purchase and sale to determine if the seller is required to buyout the equipment or the purchaser obligated to pay the rental charges.

A PPSA search can be done via one of the search houses or online with Service Ontario.

New Freehold Homes Buyer Cooling-off Period

The Act also plans to create a 10-day cooling-off period for buyers of new freehold homes (but not for contracts for the construction of a home on land owned by the buyer), similar to what new condo buyers have now. This cooling off period will only be effective after some consultation and likely not until sometime in 2025.

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