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Home Liens From Leased Appliances To Be Banned

Home Liens from Leased Appliances to be Banned

The Ontario government plans to prohibit Notice of Security Interests (NOSIs), both retroactively and going forward, to protect homeowners from fraudulent scammers.

A NOSI is a notice that can be registered on the land registry system by a business when it finances or leases certain home appliances on a property like a furnace, water heater or air conditioning unit.

NOSIs alert potential buyers that certain items in a home are not owned, and the lender can remove and sell the item if the homeowner defaults on their lease.

In some cases, homeowners are not aware a NOSI has been registered on their title, as it’s generally included in the fine print of an exploitative contract. The debt or lien must be repaid on sale or refinancing. Some businesses charge exorbitant fees in the tens of thousands of dollars to discharge the NOSI.

Last fall, the province launched public consultations on ways to address and reduce the harmful and inappropriate use of NOSIs against unsuspecting consumers.

The Ford government announced its plan to ban NOSIs after the Ontario New Democratic Party proposed legislation that would do the same thing.

While no date has been set for the bill to be tabled, it is expected this spring.