Notices of Security Interest
Learn what a Notice of Security Interest is, how it differs from a lien, how you can check if one is registered to the title to your home, and how you can protect yourself from unfair practices under the Consumer Protection Act.
Overview
If you enter a contract with a business to rent, finance or lease certain goods that are to be installed as a fixture in your home (for example, a water heater, heating, ventilation and air conditioning (HVAC) unit or a furnace), that business may put a Notice of Security Interest (NOSI) on the title to your property. This notice is registered on the Ontario land registry system (OnLand.ca) and signals to other parties that the business has a security interest in a fixture on the land.
A business may put a NOSI in place to protect its security interest in the good or equipment, and may repossess that equipment if a homeowner defaults on payment. It is a common business practice – the registration is permitted under the Personal Property Security Act – and is often inaccurately referred to as a lien.
While a NOSI is registered on a home’s title, it does not provide its holder (the business) with an interest in the land or the rights to any proceeds from a sale of the land.
In some cases, homeowners may not be aware that a NOSI has been registered on their title until they prepare to sell their home or refinance their property. There have been numerous reports of businesses charging homeowners exorbitant fees to discharge NOSIs.
The Homeowner Protection Act, 2024
The Homeowner Protection Act, passed on June, 6, 2024, reduces harm caused to consumers by the misuse of NOSIs. It bans the registration of consumer NOSIs on the Land Registry and deems consumer NOSIs currently registered on title to be expired. This does not impact commercial NOSIs.
How to find out if a NOSI is registered to your title
Consumers should check their home title on OnLand.ca – the Ontario land registry – to see if a NOSI has been registered. OnLand.ca gives users remote access to search and download Land Registry records. It also allows consumers to search historical and current property records from the convenience of your home or office, instead of by visiting a Land Registry Office.
Land Registry Services also offers resources and tutorials at the OnLand Help Centre to support customers as they search through land registry records.
If you are currently working with a lawyer, your lawyer may help you confirm whether there is a NOSI registered on your title, and work with you and the business if a NOSI needs to be discharged.
Your rights under the Consumer Protection Act
When you sign a contract with a business or individual to buy or lease products or services, the Consumer Protection Act protects you from unfair practices.
Find out how you are protected by the Consumer Protection Act for the following services:
- Your rights when signing or cancelling a contract.
- Rules for businesses for door-to-door sales.
- What you need to know when buying a house
Contact us
If you have questions or concerns about NOSIs, call ServiceOntario from Monday to Friday, 8:30 a.m. to 5:00 p.m.at:
1-888-278-0001 (toll free)