July 15th 2024
The Homeowner Protection Act, 2024 (HPA), came into force on June 6, 2024. This legislative effort marks a significant step forward in protecting homeowners and buyers in Ontario and it introduces several key measures aimed at ensuring fair practices in the real estate market, each of which will be given a brief review in turn.
Banning Notices of Security Interest (NOSIs) for Consumer Goods
One of the pivotal changes brought by the HPA is the ban on new registrations of NOSIs for consumer goods on land titles. Most commonly, NOSIs are registered for items like rental water heaters, air conditioners, and furnaces. This ban is intended to protect homeowners from unexpected and exorbitant buyout charges when selling their properties or securing financing. Specifically, Section 54 of the PPSA has been amended to include subsection 7, which deems all existing NOSIs for consumer goods as expired as of June 6th, 2024.
10-Day Cooling-Off Period
The HPA grants buyers of newly built freehold homes a 10-day cooling-off period to reconsider their purchase agreements without penalty. This aligns with existing protections for pre-construction condominium buyers, ensuring that all homebuyers have adequate time to make informed decisions.
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Enhanced Transparency and Accountability for Builders
To increase transparency and boost buyer confidence, the HPA mandates that builders disclose their history of cancelling purchase agreements for new freehold homes. This measure is designed to prevent deceptive practices and ensure that buyers are fully aware of the builder’s past actions before entering into a purchase agreement.
Combating Illegal Building Practices
The Act also includes provisions to combat illegal building practices. It aims to protect consumers from unlicensed builders who fail to enrol homes in Ontario’s warranty program, Tarion. Further consultations are planned to address these illegal practices comprehensively, thereby ensuring that all builders adhere to the necessary legal and safety standards.
Strengthening Condominium Protections
The jurisdiction of the Condominium Authority Tribunal will be expanded under the HPA. This expansion is part of broader efforts to improve the management and transparency of condominium operations, providing more robust protections for both owners and buyers.
Heritage Conservation
In a bid to support heritage conservation, the HPA amends the Ontario Heritage Act, giving municipalities until January 2027 to evaluate properties on their heritage registers. This amendment aims to balance the need for heritage conservation with the administrative pressures faced by municipalities.
Promoting Transit-Oriented Housing
To maximize the benefits of transit investments, the HPA proposes exempting designated transit-oriented community lands from certain Planning Act provisions. This exemption is intended to facilitate the development of mixed-use housing near transit hubs, promoting efficient land use and better integration of housing and transit infrastructure
Conclusion
The Homeowner Protection Act, 2024, represents a comprehensive effort to enhance consumer protections in Ontario’s real estate market. By addressing issues related to NOSIs, cooling-off periods, and builder transparency, among other items, the HPA should result in a fairer and more secure environment for home ownership in Ontario. If you have been affected by a Notice of Security placed on your home and would like to discuss how to have this removed through an application to delete the NOSI, do not hesitate to reach out to Liddiard Law today!
Michael Liddiard, BA MA JD
Liddiard Law Professional Corporation
michael@liddiardlaw.ca