We are looking for support from fellow colleagues to petition the Ontario Government to abolish Notices of Security Interest (NOSIs) and Lodgements from our residential ownership system (with retroactive effect).

If you have ever had a dispute or conversation about a water heater, furnace, or other rental equipment at a client's property - this petition will be of significance to you. 

We ask that you please sign and circulate!

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Todd McCarthy, MPP

Minister of Public and Business Service Delivery

777 Bay Street, 5th Floor, Toronto, Ontario M5B 2H7

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Re:  Open letter to the Ontario Government - from REALTORS; Call for prohibition and retroactive removal of Notice of Security Interests and Lodgements

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We are Ontario real estate agents, brokers, and registrants, writing on behalf of thousands of Ontario homeowners who are dealing with the very real threat of losing their homes. We have observed a considerable increase in the prevalence of companies offering long-term leasing and financing arrangements for home equipment and renovations, often sold door-to-door, without due regard for the end consumer. We are advocating that this matter be regarded with heightened concern and prioritized for legislative review by the Ontario Legislature. 

The Problem:

The registration of notice of security interests (NOSI) or Lodgements against title ownership of vulnerable homeowners in Ontario, often in respect of unwanted and overpriced home services and equipment, has escalated to the point where it is openly and brazenly being abused. The victims of these predatory practices are elderly homeowners who are socially isolated with limited financial means, deliberately targeted due to their social and demographic profile.

There is an enormous burden on homeowners, since mortgage lenders and purchasers require NOSIs and Lodgements to be removed from title before completing a transaction. The properties are effectively held hostage, and the victims are forced or extorted to pay the amount the registrant claims to be owing, regardless of whether that sum is legitimate or not.

We, as realtors with ‘boots on the ground’ have collectively witnessed thousands of distressed homeowners who have less than a week to clear thousands of dollars in NOSIs they never knew existed; failing which, these homeowners risk defaulting or being brought to court over failing to clear these instruments from their title.

This system is broken. 

The Solution: Outright Prohibition of NOSIs 

There is no other adequate solution other than a complete prohibition of NOSIs for all residential ownership. Removing NOSIs undeniably evens the playing field amongst legitimate business interests. No other consumer goods sector allows for registration of unregulated security interests against title to property; why should HVAC and renovation companies be granted special rights to leverage title?

We, as realtors, agents, brokers, and registrants in Ontario, demand that NOSIs be abolished. The only viable solution to protect Ontario homeowners is to remove, via legislation, the ability to unilaterally encumber and leverage title through use of the NOSI or Lodgement.

Retroactive Removal of NOSIs and Lodgements from Title to Lands 

Regrettably the extent of harm already facilitated by way of these flawed instruments is already palpable. Vulnerable homeowners will remain unaware of the NOSI problem for many years to come (when they refinance or sell their property), which will only serve to compound this issue further. We witness this time over time. These victims do not know about the NOSI until the last minute, when there is no time to resolve it without paying out the bad actors.  

We demand that this Government not only prohibit NOSIs and Lodgements going forward but move to immediately delete, vacate, and abolish NOSIs and Lodgements from residential properties retroactively. There is no viable solution to this problem if we cannot resolve the damage done under the oversight of the Ontario Government.  

Again, this Government must be proactive, not reactive.  Should legislation not retroactively discharge NOSIs or Lodgements, this problem will continue for decades to come. We urge the Ontario Government to avail itself and act on this urgent caution.

We welcome the opportunity to speak in further detail about this problem and our proposed solution.

The following realtors, brokers, and registrants are in support of this initiative,

Reference:  https://www.cbc.ca/news/business/seniors-mortgages-marketplace-1.6795104