Surprise! Liens Are Gone: Ontario Bans NOSIs from Property Titles

Surprise!

Liens Are Gone: Ontario Bans NOSIs from Property Titles

May 14, 2025

By Erika Knox

In June 2024, the Homeowner Protection Act came into force. This is a landmark consumer protection law that eliminates a powerful and often abusive tool used by companies to secure payment for household equipment: the Notice of Security Interest (NOSI).

For years, some companies sold or leased furnaces, air conditioners, and water heaters—under misleading or high-pressure sales tactics. These companies further registered NOSIs on the titles of residential homes. These filings acted like liens, restricting a homeowner’s ability to sell or refinance unless they paid off the contract in full—regardless of the equipment’s value or whether the homeowner was even aware the NOSI existed.

What Is a NOSI and Why Was It a Problem?

A Notice of Security Interest is a registration on your property title indicating that someone else has a claim to some type of equipment installed in your home—usually HVAC equipment, a water system, or similar household goods.

Many homeowners were never typically overtly told that signing a rental agreement for a furnace or water filter would result in their property title being encumbered. Many came to this realization when trying to sell their home and were told they had to pay off thousands of dollars to remove the lien—even if the equipment itself was worth a fraction of the amount.

NOSIs were especially problematic because:

• They could be registered without precise and direct notice or consent.

• They often appeared years later during a sale or refinancing.

• Companies demanded inflated buyouts to remove them.

• Vulnerable members of our society, such as the elderly or people with disabilities were disproportionately affected.

In 2024, it was estimated that the monetary value was more than $1 billion in NOSIs registered upon Ontario homes—impacting thousands of families across the province.

What Does the Homeowner Protection Act Do?

The new legislation puts an end to this practice. Effective June 5, 2024, the Act made the following key changes:

• New NOSIs for consumer goods are banned. Companies can no longer register a NOSI on your property title for items like furnaces or water heaters.

• Existing NOSIs are deemed expired. If a NOSI for consumer goods was already on your title, it no longer has legal effect.

• Homeowners can have expired NOSIs deleted. A lawyer can apply to have the NOSI removed from your title through a simple process.

This means homeowners now have control over their property titles, without being strong-armed into paying off predatory contracts just to close a deal.

What Should You Do If a NOSI Is on Your Title?

If your property has a NOSI on title for an HVAC or similar system, you may still see it listed in a title search—but it is no longer valid. A lawyer can help you file an application to remove it from your title under the new law.

You do not need to pay the lender or get their permission.

You are still responsible for your original contract, but the company can no longer use your home’s title as leverage to collect. And if you were misled or pressured into signing that agreement, you may have additional legal options.

Why This Matters

This law restores fairness and transparency to Ontario homeowners. Your home should never have been collateral for a furnace rental, or other equipment, especially without clear consent or understanding. The Homeowners Protection Act ensures that your property title is yours again—free from hidden encumbrances tied to consumer goods.

At AJ Murray Legal Services P.C., we’ve seen firsthand how these hidden liens caused stress, lost deals, and financial hardship.  A lot of these cases were brought through the Small Claims Court and can now be effectively resolved. Please feel free to reach out for assistances in resolving any such cases currently before the Small Claims Court.