Bill 200 is in it is first reading only and the scheduled second reading has not yet been assigned. The province plans to seek feedback in the upcoming months regarding adjustments to assist in the enforcement of a cooling-off period for the purchase of new freehold homes, enhance access to information and transparency for buyers of new freehold homes, and provide improved support for condominium communities.
The main purpose of Bill 200 is to provide enhanced safeguards for consumers, particularly the elderly and vulnerable residents, and to empower Ontarians to make informed decisions when it comes to significant financial investment for their homes.
One of the provisions of the proposed Bill is the ban on the registration of consumer Notices of Security Interest (NOSIs). This measure aims to eliminate the misuse of NOSIs by “bad actors” who exploit consumers, especially seniors, through inflated payments and high-interest mortgages. In addition, currently registered consumer NOSI registrations will be deemed expired, and a mechanism will be established to delete expired NOSIs from title.
To further strengthen consumer protections, the bill proposes the establishment of a 10-day cooling-off period for purchases of new freehold homes. This period will allow buyers to cancel agreements without penalties, giving them time to fully understand their commitments and make informed choices.
Bill 200 was designed to bring relief to consumers affected by the misuse of NOSIs, without eliminating businesses' security interest in fixtures or invalidating contracts with consumers. Businesses can still repossess fixtures and seek repayment through legal means if consumers default.
Moving forward, the province intends to engage in consultations in the coming months to gather feedback and support the implementation of the cooling-off period for purchases of new freehold homes. This will ensure that the changes not only benefit consumers but also improve access to information and transparency for buyers of new freehold homes and better support condominium communities.
The proposed amendments brought forth by Bill 200 hope to provide a safer and more secure environment for homeowners and buyers in Ontario. We will keep you updated on any further developments as the bill progresses through the legislative process.
Quick facts – Bill 200, The Home Protection Act, 2024
1. Ban the registration of consumer Notices of Security Interest (NOSIs)
2. Deem currently registered consumer NOSI registrations to be expired.
3. Provide a mechanism for the deletion of expired NOSIs from title.
4. Further strengthen consumer protections for homeowners and buyers by establishing a 10-day cooling-off period for purchases of new freehold homes, allowing buyers to cancel agreements without penalties. This provides buyers with time to fully understand their commitments and back out if they choose.
The province plans to seek feedback in the upcoming months (dates to be determined) regarding adjustments to assist in the enforcement of a cooling-off period for the purchase of new freehold homes, enhance access to information and transparency for buyers of new freehold homes, and provide improved support for condo communities. HRAI will provide our response to the Minister on Bill 200. If you would like to provide feedback or have any inquiries, please contact Marla DiCandia, HRAI’S Government Relations Director at mdicandia@hrai.ca
