Breaking Down Ontario’s Game-Changing Homeowner Protection Act

In June 2024, the Ontario government made a big move to shield homeowners from shady practices by putting the Homeowner Protection Act, 2024 in place — a new law designed to safeguard people buying homes or that own homes. This is especially important to protect vulnerable people, like seniors, who are often the target of real estate scams.

Higher risk demographics aside, understanding this new legislation is important for anyone involved with real estate. These new rules could directly impact your rights and protections as a homeowner or home buyer. That’s why it’s smart to consult with a real estate lawyer who can break down what these changes mean for you specifically in relation to a property you’re looking at buying or that you already own. Being aware of the ins and outs of the new law will ensure you’re making informed decisions about your property when it comes time to sell and before you buy a new property. To help inform you about what has changed and what you need to be aware of we’ve compiled the list below for you.

1. The Homeowner Protection Act Guards Against NOSI Fraud 

If you sign a contract with a business to rent, finance, or lease items like a water heater, HVAC unit, or a furnace to be installed in your home, that business might place a Notice of Security Interest (NOSI) on your property title. This notice registered on the Ontario land registry system (OnLand.ca), informs others that the business has a claim on a fixture in your home.

Before you raise any alarms though, a NOSI on your home’s title does not give the business any ownership of the land or rights to money from a sale of the property. Sometimes, homeowners might not know a NOSI is on their title until they try to sell or refinance their home. There have been many reports of businesses demanding high fees from homeowners to remove these NOSIs as well which is, of course, concerning to homeowners.

This new legislation bans NOSIs for consumer goods on the Land Registry, deems existing ones expired to keep property titles clear, and allows businesses to repossess fixtures and seek repayment through legal means. If you’re wondering whether or not there is a NOSI on your home, your lawyer can confirm if one is registered on your title, and can work with you and the business to get it discharged. 

2. The New 10-Day Cooling-Off Period for New Freehold Homebuyers

The new legislation gives buyers a 10-day period to change their minds after agreeing to buy a new freehold home, without any penalties. This period of time helps buyers make sure they understand their decision and can get their financing in order. This is especially helpful in a fast-moving real estate market like we have seen in the last couple of years.

3. Builders Are Now Held Accountable to Protect New Homebuyers

The province plans to add more rules to make home buying or building a clearer and more trustworthy process. One requirement is for builders to publicly share their history of canceling purchase agreements like they already do for condos. This helps home buyers make better decisions while avoiding unreliable builders. And with the right lawyer in your corner from the start, they’ll read through every fine detail to protect your interests and can make it easier to expedite the process while taking care of due diligence so that you can rest at ease as you navigate your build.

4. Cracking Down on Illegal Building Practices

Illegal home building and selling pose significant risks to consumers, often resulting in homes with defects and higher warranty claims. The new legislation will explore ways to protect buyers from these risks, including stricter enforcement of licensing requirements and mandatory enrollment with Tarion, Ontario’s new home warranty and protection program. Consultations in early 2025 will develop recommendations to combat these practices, ensuring a fairer market for compliant builders and safer, higher-quality homes for buyers. We will have to watch for future updates to know how this one rolls out but, it’s a step in the right direction.

5. Strengthening Condo Community Protections

Ontario’s condo communities, home to over a million people, will benefit from the Condominium Authority Tribunal handling more types of disputes. This online tribunal will cover a broader range of disputes, providing more accessible and efficient resolution options. Future discussions will focus on better condo management and making operations more transparent to protect condo owners and buyers. 

6. Support For Heritage Conservation and Housing Growth

The new law also suggests changes to the Ontario Heritage Act. It will give cities and towns two more years, until January 1, 2027, to look over the old buildings on their heritage lists.

This extra time helps cities, big and small, focus on the most important old buildings. It also tries to balance protecting Ontario’s history with the building of new homes to allow for growth. The idea is to protect our historic places while making sure there’s enough housing for everyone.

7. Creating More Housing Options For Public Transit Users

Ontario wants to make it easier to build homes close to public transportation. They’re doing this to make the most of the money they’ve spent on building transit systems by changing some rules for areas near transit stations. These changes will make it simpler and faster to build apartments, condos, and even shops, or offices in the same buildings as homes.

The goal is to create neighbourhoods where people can live, work, and shop without needing to drive long distances. This approach is called “transit-oriented development.” The idea is to build homes faster, encourage the use of transit, and reduce traffic to help the environment.

Have Questions? Consult a Real Estate Lawyer To Protect Yourself From Real Estate Fraud

With the ever-changing landscape of real estate laws and the rise in sophisticated scams, protecting yourself from fraud in real estate and other areas of life is crucial. Whether you’re buying, selling, or managing property, staying vigilant and informed is your best defense.

Handling real estate transactions safely requires more than just caution – it demands professional legal expertise. At Hukam Law, our experienced real estate lawyers specialize in fraud prevention and can thoroughly review all contracts and documents, conduct proper title searches, and verify property ownership, while also ensuring secure handling of funds during transactions. Advising you on the latest fraud prevention measures is a part of our process.

Don’t leave your biggest investment vulnerable to scams. Contact Hukam Law today at 705-915-0884 or info@hukamlaw.ca. Let us be your shield against fraud and provide you peace of mind throughout your real estate journey.

Note: Consulting a legal professional can provide personalized advice and ensure you fully understand the implications of the new legislation and how it impacts your situation.

***The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.