What is an NOSI?

A Notice of Security Interest (NOSI) is a notice that is registered on the title of real property in certain circumstances. For example, if a property owner rents, leases or finances a fixture such as an appliance or equipment (including things such as air conditioners, furnaces or water heaters), the seller of the fixture may put an NOSI on the property title. The NOSI allows anyone searching the title to know that the seller of the fixture listed in the NOSI has a ‘security interest’, which is a legal right over that fixture. The registration is authorized under Ontario’s Personal Property Security Act (PPSA). It is not a lien. The NOSI is registered on the Ontario land registry system (OnLand.ca). Although the NOSI is registered on title, the seller does not have ownership or an interest in the land, nor the right to receive any proceeds from the sale of the land.

The Homeowner Protection Act, 2024

The Homeowner Protection Act (HPA) came into effect in Ontario in June 2024. The HPA amended the Personal Property Security Act and bans the registration of consumer NOSIs on the Ontario land registry system (OnLand.ca). The HPA also deems the consumer NOSIs that are currently registered on title to be expired. Consumer NOSIs are “goods that are used or acquired for use primarily for personal, family or household purposes”. Therefore, this new law does not affect commercial NOSIs.

In some cases, homeowners were not aware that an NOSI was registered on the title of their property until they took steps to sell or refinance their home. Many homeowners also reported that the business which registered the NOSI was charging a large fee to have the NOSI discharged from title.

Although, under the HPA, NOSIs are considered to be expired, homeowners may still want to remove them from title. The HPA now allows the owner of the home to have the NOSI deleted from title by making an application to amend the register.

								
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