Changes under the Homeowner Protection Act, 2024
The Homeowner Protection Act, 2024 (Bill 200), came into force on June 6, 2024, and is touted as helping protect consumers from predatory lending practices. From the standpoint of consumer lenders and land developers, however, it brings about several changes to be aware of.
Key among them is the following:
Ban on Notices of Security Interest (NOSIs): The Act amended the Personal Property Security Act, to prohibit NOSIs for consumer goods (e.g., HVAC systems or water heaters) from being registered in the Land Titles system. This prevents homeowners from unknowingly having their homes subject to hidden fees and buyout costs, legally encumbered by NOSIs that have been registered by supplier companies. Any existing consumer NOSIs are also deemed to have expired as of June 5, 2024.
10-Day Cooling-Off Period for New Freehold Homes: Buyers of new freehold homes are now granted a 10-day cooling-off period, during which they can rescind their purchase agreement without penalty. This provision mirrors protections already available to condominium buyers and gives buyers more time to review their agreements.