As of June 2024, Ontario homeowners gained stronger protection against predatory liens and misleading financing registrations. This was achieved through the enactment of the Homeowner Protection Act, 2024, the province amended the Personal Property Security Act (PPSA) to prohibit the registration of Notices of Security Interest (NOSIs) regarding consumer goods on title to real property.[1] This legislative change marks the end of a controversial practice that allowed certain companies to encumber property titles for financed household goods such as HVAC systems, furnaces, and water heaters.[2]
NOSIs ON CONSUMER GOODS NO LONGER PERMITTED
Under the new rules, NOSIs that relate to consumer goods can no longer be registered against title in Ontario’s land registration system. Section 54 of the PPSA now expressly limits NOSI registrations to collateral that is not classified as consumer goods.[3]
To ensure compliance, ServiceOntario and Teraview require solicitors registering NOSIs electronically to include a mandatory law statement, known as Law Statement 3768, confirming that the notice does not pertain to consumer goods and that it complies with the PPSA.[4] Mandatory law statement 3768, reads as:
I (name), solicitor, make the following law statement. This notice of security interest does not relate to collateral that is consumer goods and may be registered pursuant to s. 54 of the Personal Property Security Act.[5]
Practically, this means that businesses offering consumer financing for household equipment can no longer use NOSIs to secure their interest against homeowners’ real property, and any such interest may not lawfully appear on title for those goods after June 6, 2024.
LEGAL EXPIRATION OF EXISTING NOSIs
The Law Society of Ontario (LSO) has confirmed that all existing NOSIs relating to consumer goods were deemed expired as of June 5, 2024, the day prior to the Homeowner Protection Act, 2024 receiving Royal Assent.[6] The LSO has also stated that despite this, certain lenders may continue to seek payment related to previously registered NOSIs.
While such NOSIs may still appear on title, they no longer have legal effect. Property owners may apply to have these expired registrations removed. Importantly, while the registration itself is invalid, the underlying debt obligation remains enforceable through ordinary contractual means, as lawyers now rely on Personal Property Security Act (PPSA) searches and disclosures in agreements of purchase and sale, rather than registration against title.
The legislative changes were designed to curb abusive lending practices and simplify residential real estate transactions by ensuring that home titles are no longer cluttered with security notices tied to consumer goods.[7] Legal practitioners must also be aware that failure to comply with the LSO’s professional obligations when acting on NOSI-related matters could result in regulatory measures being taken against them.[8]
REMOVING EXPIRES NOSIs FROM TITLE
Property owners can now apply to have expired consumer goods-related NOSIs deleted from title. This is done through an application to Amend the Register with the Land Registry Office, accompanied by a filing fee, and a solicitor’s law statement confirming that the NOSI in question is on title for consumer goods and is subject to the ban.[9]
The necessary law statement, identified as Law Statement 3769, reads as:
I (name), solicitor for the applicant, make the following law statement. The notice of security interest registered as (instrument no.) is in respect of collateral that is consumer goods. It has been deemed to have expired pursuant to s. 54(7) of the Personal Property Security Act.[10]
This is generally done by the registered owner (or charge in possession) through their lawyer.[11] The lawyer making this statement must be the same individual submitting the application for registration. Where a NOSI has simply expired without any extensions, the application may be filed without a law statement, in accordance with Bulletin 2022-04.[12]
A single application may be used to delete one NOSI and all related assignments or extensions of that NOSI, provided each instrument is clearly identified. The application must state that it is made pursuant to section 75 of the Land Titles Act to delete the NOSI and any related assignments and/or extensions. The process ensures that land titles reflect the current legal position, free of outdated or invalid encumbrances associated with consumer financing.
KEY TAKEAWAYS
Therefore, the key takeaways regarding NOSIs are that:
- As of June 2024, NOSIs for consumer goods cannot be registered on title under the Homeowner Protection Act, 2024.
- All existing consumer goods-related NOSIs were deemed expired as of June 5, 2024.
- Property owners may apply to have expired NOSIs deleted using the process under section 75 of the Land Titles Act.
- Solicitors must provide prescribed law statements confirming compliance when registering or deleting NOSIs.
- The underlying contractual debt remains enforceable despite the NOSI’s expiration.
- This reform represents a major shift in Ontario’s consumer protection and real estate law, safeguarding homeowners from improper title encumbrances while clarifying the limits of security registration under the Personal Property Security Act.
CONCLUSION
Navigating NOSIs can present challenges, particularly in light of recent statutory amendments impacting their enforceability and registration requirements. An improperly registered or expired NOSI may persist as a complication, potentially creating challenges during property transfers unless appropriately discharged.
If you require assistance with reviewing or deleting a NOSI from title, the team at Cactus Law Professional Corporation can help ensure the process is completed accurately and efficiently. Connect with Cactus Law today for advice tailored to your specific circumstances.
Written by: Maya Kawale
[1] Homeowner Protection Act, 2024, S.O. 2024 c.18 – Bill 200 [Homeowner Protection Act]; Law Society of Ontario, “Notice to the Professions: The Homeowner Protection Act, 2024” (June 13, 2024), online: < https://lso.ca/news-events/news/latest-news-2024/notice-to-the-professions-the-homeowner-protection >; ServiceOntario, “2024-12 Homeowner Protection Act, 2024” (September 15, 2025), online: < https://www.ontario.ca/land-registration/2024-12-homeowner-protection-act-2024 >
[2] Ibid, ServiceOntario, at the ban on consumer NOSIs
[3] Personal Property Security Act, R.S.O. 1990, c P.10, at s.54 [PPSA]
[4] Ministry of Public and Business Service Delivery and Procurement, ServiceOntario, Land Registry Services Branch, “Bulletin 2024-12” (October 24, 2024), online : < https://www.teraview.ca/wp-content/uploads/2024/10/Bulletin-2024-12-Homeowner-Protection-Act-statements-FINAL-English.pdf >; Supra, note 1 ServiceOntario
[5] Ibid
[6] Supra, note 1 Law Society of Ontario
[7] Seeburger, Mathew, “The Homeowner Protection Act, 2024: Ontario’s New NOSI Ban and What You Need to Know” (June 4, 2025), online : < https://oba.org/the-homeowner-protection-act-2024-ontario-s-new-nosi-ban-and-what-you-need-to-know-e2d23d7a4fd1f476d0478be723920535/#_edn12 >
[8] Supra, note 1 Law Society of Ontario
[9] Ibid, ServiceOntario, at removing an expired consumer NOSI
[10] Supra, note 2 at pg 2
[11] Supra, note 2 at pg 2
[12] Ibid