Act
Proposed Amendments to the Personal Property Security Act, the New Home Construction Licensing Act, 2017, and the Ontario New Home Warranties Plan Act.
Regulation Number(s):
.
Instrument Type:
Act
Bill or Act:
Personal Property Security Act; New Home Construction Licensing Act, 2017; Ontario New Home Warranties Plan Act
Summary of Proposal:
The proposed amendments would, if passed:
• Make legislative changes under the Personal Property Security Act (PPSA) to ban consumer Notices of Security Interest (NOSIs) from being registered on the land registry , deem currently registered NOSIs for consumer goods that are in effect to be expired, and provide a mechanism to have an expired NOSI deleted from title.
• Establish a statutory 10-day cooling-off period for buyers of new freehold homes, and potentially other prescribed new homes, through the New Home Construction Licensing Act, 2017 (Licensing Act), once supporting regulations under the Licensing Act are made.
• Make technical amendments to the Licensing Act and the Ontario New Home Warranties Plan Act (Warranties Act).
• Make legislative changes under the Personal Property Security Act (PPSA) to ban consumer Notices of Security Interest (NOSIs) from being registered on the land registry , deem currently registered NOSIs for consumer goods that are in effect to be expired, and provide a mechanism to have an expired NOSI deleted from title.
• Establish a statutory 10-day cooling-off period for buyers of new freehold homes, and potentially other prescribed new homes, through the New Home Construction Licensing Act, 2017 (Licensing Act), once supporting regulations under the Licensing Act are made.
• Make technical amendments to the Licensing Act and the Ontario New Home Warranties Plan Act (Warranties Act).
Analysis of Regulatory Impact:
1. NOSI
• The proposed legislative changes to ban consumer NOSI registrations and deem currently registered consumer NOSIs that are in effect to be expired could potentially result in indirect costs to consumers, if they choose to remove the record of the expired consumer NOSI from the Land Registry (i.e., legal costs and registration fees).
2. Cooling-off
• The proposed amendments to establish a cooling-off period for buyers of new freehold homes could result in some upfront operating costs, ongoing operating costs, and administrative costs for builders of new freehold homes. The amendments could also help buyers make more informed and confident purchasing decisions. This initiative would not apply to purchases of new condominium units that are already subject to a cooling-off period under the Condominium Act, 1998, or contracts for the construction of a home on land that the consumer (and future occupant) already owns.
3. Technical amendments to the Licensing Act and the Warranties Act
• The proposed amendments would not result in additional costs or benefits.
• The proposed legislative changes to ban consumer NOSI registrations and deem currently registered consumer NOSIs that are in effect to be expired could potentially result in indirect costs to consumers, if they choose to remove the record of the expired consumer NOSI from the Land Registry (i.e., legal costs and registration fees).
2. Cooling-off
• The proposed amendments to establish a cooling-off period for buyers of new freehold homes could result in some upfront operating costs, ongoing operating costs, and administrative costs for builders of new freehold homes. The amendments could also help buyers make more informed and confident purchasing decisions. This initiative would not apply to purchases of new condominium units that are already subject to a cooling-off period under the Condominium Act, 1998, or contracts for the construction of a home on land that the consumer (and future occupant) already owns.
3. Technical amendments to the Licensing Act and the Warranties Act
• The proposed amendments would not result in additional costs or benefits.
Further Information:
Bill 200, Homeowner Protection Act, 2024
Proposal Number:
24-MPBSD009
Posting Date:
May 27, 2024
Comments Due Date:
June 5, 2024
Contact Address:
Ministry of Public and Business Service Delivery
56 Wellesley St West, 6th Floor, Toronto ON, M7A 1C1
56 Wellesley St West, 6th Floor, Toronto ON, M7A 1C1