The Ontario government is taking action to protect residents from fraudulent use of Notices of Security Interest (NOSIs). On Monday, the province announced the introduction of the Homeowner Protection Act, 2024, which will eliminate the ability for people to place NOSIs on the land registry system for consumer goods.
NOSIs are typically used by businesses to protect their interests when items such as appliances are purchased with financing. However, in recent years, NOSIs have become tools for organized and deliberate deception used to scam hardworking Ontarians.
Since the early 2000s, the number of NOSIs registered on Ontario’s land registry has skyrocketed from around 2,000 each year to more than 58,000 in 2023 alone. In many cases, these are registered without the homeowner’s knowledge and for more money than the product’s actual worth.
Homeowners usually discover NOSIs when they want to sell or refinance their homes, and then bad actors exploit this by demanding exorbitant fees to discharge them. In some instances, multiple NOSIs are registered on a single property, which are later converted into sham mortgages that rob hardworking and law abiding Ontarians of their life savings and their home equity.
The Homeowner Protection Act, 2024, will eliminate all NOSIs which are currently in place, which amounts to about $1 billion, according to Todd McCarthy, Minister of Public and Business Service Delivery. The legislation will also include a mandatory 10-day cooling-off period for the purchase of new freehold homes, public disclosure when builders cancel purchase agreements, and an expansion of the Condominium Authority Tribunal’s jurisdiction over disputes.
The new legislation is a result of the efforts of Waterloo police Det. Adam Stover, who has been instrumental in investigating and documenting the harms caused by NOSIs.
“Det. Stover’s efforts have been instrumental in investigating and documenting the harms caused by NOSIs,” said McCarthy. “It is because of his and the Waterloo Regional Police Service’s tireless efforts that we are here today to take a stand against those who seek to victimize our fellow citizens and residents.”
The removal of NOSIs will eliminate the predators and put money back into the pockets of homeowners. Organized crime has been using NOSIs and predatory lending to liquidate the equity from vulnerable seniors’ homes.
The Ontario government is committed to protecting residents from fraud and abuse. The Homeowner Protection Act, 2024, is a significant step towards achieving this goal.
