Ontario's Homeowner Protection Act, 2024 (Bill 200) changes how rental equipment shows up. Or, more accurately, no longer shows up. On title. Here is what real estate agents, mortgage brokers, and homeowners need to know.
Understanding NOSIs
A Notice of Security Interest (NOSI) is an encumbrance registered on title for certain personal property. Most commonly rental items like furnaces, water heaters, and air conditioning units. Historically, the NOSI system ensured that outstanding rental agreements or secured interests were clearly visible to potential buyers and lenders. Rental items secured by a NOSI had to be addressed before a property could be sold or refinanced.
The Legislative Amendment
The Homeowner Protection Act, 2024 amends the Personal Property Security Act (PPSA) to prohibit the registration of NOSIs for consumer goods in Ontario's land registry offices. Any existing NOSIs for consumer goods effective before June 6, 2024 are now deemed expired and can be deleted from title.
Implications for Real Estate Agents and Mortgage Brokers
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Enhanced diligence required. Rental items are now covered by the PPSA alone. They no longer appear on title. Agents and brokers need to actively ask sellers and borrowers about rental equipment accounts. Verifying that no undisclosed rental agreements exist is essential to avoid post-closing surprises.
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PPSA searches matter more than ever. Experienced real estate lawyers conduct PPSA searches against the seller's name to surface rental obligations that won't appear on title. This protects buyers from inheriting a furnace lease they did not agree to.
If you have a transaction in flight and want to be sure rental equipment is properly accounted for, get a free quote. We run the PPSA search as part of every purchase file.
Common questions
What is a NOSI on a house title?
A Notice of Security Interest is an encumbrance that used to be registered on title for certain personal property — most commonly rental furnaces, water heaters, and air conditioning units. It signalled to buyers and lenders that rental or secured items had to be dealt with before a sale or refinance. Ontario banned new NOSIs for consumer goods in 2024.
Can a NOSI still be registered on title in Ontario?
No. The Homeowner Protection Act, 2024 (Bill 200) amended the Personal Property Security Act to prohibit registering NOSIs for consumer goods in Ontario's land registry offices. Rental items like furnaces, water heaters, and air conditioners no longer show up on title at all — they are covered by the PPSA alone.
What happens to a NOSI that was already on my title?
It is deemed expired. Any NOSI for consumer goods that was effective before June 6, 2024 is now treated as expired and can be deleted from title. Keep in mind the registration and the rental agreement are separate things, so the equipment may still carry ongoing rental obligations even though the NOSI is gone.
How do I find out if a house has rental equipment before I buy it?
Ask the seller directly, and have your lawyer run a PPSA search against the seller's name. Because rental items no longer appear on title in Ontario, a title search alone will not reveal a rented furnace or water heater. A PPSA search surfaces rental obligations so you don't inherit a lease you never agreed to.
About the author: Christian Janisse is a licensed Ontario real estate lawyer and the founder of Simplyclose Law Professional Corporation. He acts for buyers, sellers, and lenders on purchases, sales, refinances, and title transfers across Ontario — in person in Windsor and remotely province-wide.