Homeowner Protection Act 2024 Ontario: NOSI Changes Buyers & Sellers Must Understand
- 5 days ago
- 3 min read
Updated: 5 days ago
The end of the NOSI era and new protections for Ontario homeowners.
The Homeowner Protection Act 2024 Ontario has changed the landscape for homeowners dealing with equipment contracts such as furnaces, hot water tanks, air conditioners, and water treatment systems.
For years, companies registered a Notice of Security Interest (NOSI) on the title of a homeowner’s property whenever equipment was rented or financed. These registrations often appeared without the homeowner fully understanding the long-term implications.
That practice is now prohibited , but the financial obligations behind those contracts still exist.
1. NOSIs can no longer be registered for home equipment
Under the new legislation:
Companies can no longer register a NOSI on title for equipment such as furnaces, water heaters, or water treatment systems.
Existing NOSIs registered before the Act are no longer valid and must be removed from title.
This is a significant consumer protection measure. However, it does not erase the underlying debt.
2. The debt still exists — even if the NOSI must be deleted
The deletion of the NOSI from title does not cancel the contract. If a homeowner entered into a rental or financing agreement for equipment:
The obligation to pay still exists
The company may still enforce the contract
The homeowner may still owe a buyout amount if they want to end the agreement.
The only thing that changes is that the company cannot secure its interest on the property title.
“The deletion of the NOSI from the property title does not erase the underlying debt, it simply removes the company's ability to hold your home’s title hostage.”
3. Why the Homeowner Protection Act 2024 Ontario matters when buying or selling a home
When a property is sold, the status of equipment contracts must be clearly addressed in the Agreement of Purchase and Sale.
If the buyer is not assuming the equipment:
The seller must pay out the contract in full, and
The NOSI must be deleted from title before closing.
This ensures the buyer receives clear title and no ongoing obligations.
If the buyer is assuming the equipment as a rental:
The buyer should still insist that the NOSI be deleted, because it is no longer valid under the Act
The buyer then continues making the rental or financing payments directly to the equipment provider.
In other words:
Assuming the contract does not mean assuming the NOSI.
The NOSI must be removed either way.
4. Why Clarity in the Agreement Is Essential
The Agreement of Purchase and Sale should explicitly state:
Whether the furnace, hot water tank, or water treatment system is owned, rented, or financed
Whether the buyer is assuming the rental/financing contract
Whether the seller must pay out the contract before closing
That the NOSI must be deleted from title regardless of assumptio.
Ambiguity leads to disputes, delays, and unexpected costs.
“In the new legal landscape, assuming an equipment contract never means assuming a NOSI. The registration must be removed from title regardless of who is paying the bill.”
Final Thoughts
The Homeowner Protection Act 2024 Ontario has changed how NOSIs operate, but it has not changed the importance of proper disclosure. It is the responsibility of the realtors involved to confirm with the seller which equipment is owned, rented, or financed, and to ensure this information is accurately written into the Agreement of Purchase and Sale.
If the buyer is not assuming the equipment, the seller must arrange for the NOSI to be deleted and the contract fully paid out before closing. If the buyer is assuming the rental or financing agreement, the NOSI must still be removed from title, and the buyer will continue making payments under the contract.
Clear disclosure at the offer stage prevents disputes, delays, and unexpected costs. Properly identifying equipment status is not optional, it is a critical part of ensuring a clean transfer of title and protecting both parties in the transaction.
