Attention Ontario homeowners and future homebuyers!
The government is taking a big step forward to protect you from deceitful tactics with the introduction of the Homeowner Protection Act, 2024. This legislation is a game-changer, especially for our vulnerable residents like seniors, who are often targeted by predatory schemes.
President & CEO of CanAge, Laura Tamblyn Watts says, “This legislation takes historic action in protecting the financial well-being of Ontario’s seniors. Vulnerable Ontarians, including seniors, can now see the government taking proactive measures to prevent predatory behaviors from bad actors.”
Ending the Exploitation of NOSIs
One of the key changes involves Notices of Security Interest (NOSIs). These are registrations a business can place on the Land Registry for certain goods they finance or lease on a property, like a water heater or furnace. While intended to protect a business’s interest, investigations revealed misuse of NOSIs to exploit homeowners, particularly seniors.
These scams often involve leveraging the NOSI to secure high-interest mortgages on the property, potentially leading to the homeowner losing their home. The proposed legislation bans the registration of NOSIs for consumer goods on the Land Registry and deems existing NOSIs for consumer goods to be expired. This protects homeowners from predatory tactics and ensures their property title remains clear. Existing NOSIs for consumer goods will be deemed expired, removing the potential for these deceptive practices. Although businesses retain the right to repossess fixtures and seek repayment through legal means if consumers default, this change eliminates a significant avenue of fraud and abuse.
Introducing a 10-Day Cooling-Off Period for New Freehold Homes
In addition to addressing the misuse of NOSIs, the legislation introduces a statutory 10-day cooling-off period for the purchase of new freehold homes. A statutory 10-day cooling-off period for new freehold home purchases allows buyers to back out of agreements without penalties. This period enables buyers to fully understand their commitments and secure financing, ensuring more informed decision-making. This measure is particularly important in a fast-paced real estate market, where decisions often need to be made quickly.
Additional Measures to Protect New Homebuyers
The province also intends to consult on additional measures to ensure transparency and reliability in the home buying process. This includes requiring public disclosure of a builder’s history of cancelling purchase agreements, which currently applies to condo projects. By making this information accessible, buyers can make more informed decisions and avoid unreliable builders.
a) 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 enrolment 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.
b) Strengthening Condo Community Protections
Ontario’s condo communities, home to over a million residents, will benefit from expanded jurisdiction for the Condominium Authority Tribunal. This fully online tribunal will cover a broader range of disputes, providing more accessible and efficient resolution options. Upcoming consultations aim to improve condo management and increase transparency in operations, further protecting condo owners and buyers.
c) Supporting Heritage Conservation and Housing Growth
The legislation also proposes amendments to the Ontario Heritage Act, extending the timeline for municipalities to review properties on their heritage registers by an additional two years, until January 1, 2027. This extension helps municipalities prioritize significant properties and supports the conservation of Ontario’s heritage while accommodating housing construction and future growth.
Additionally, Ontario is taking steps to facilitate more mixed-use housing near transit, maximizing the benefits of the province’s substantial investments in transit infrastructure. By exempting designated transit-oriented community lands from certain Planning Act provisions, the government aims to streamline the development process and encourage sustainable urban growth.
What This Means for You
The proposed legislation signifies a significant step forward in safeguarding homeowners and homebuyers in Ontario. These measures aim to create a fairer and more transparent housing market.
Real Estate Lawyer at Nanda & Associates Can Help You!
Whether you’re a homeowner, a buyer, or a condo owner, navigating the intricacies of real estate can be challenging. As these new protections take effect, it’s more important than ever to ensure your real estate transactions are handled with the utmost care and legal expertise.
At Nanda & Associate Lawyers, our experienced real estate lawyers are here to guide you through every step of your home buying journey, ensuring your interests are protected.
Contact us today to learn more about how we can help you!
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