Ontario has banned registering notices of security interest (NOSIs) on land title for consumer goods, and water heaters are one of the province's own examples. According to the province's Notices of Security Interest page, published May 27, 2024 and last updated January 6, 2026, the Homeowner Protection Act became law on June 6, 2024. It bans new consumer NOSIs and deems existing consumer NOSIs expired. For a province where many homes have a rented tank, that removed one of the tools rental companies used to keep customers.
What the law changed
The short answer: no new consumer NOSIs, and old ones no longer affect the land.
The province's guidance sets out four points:
- Registration is banned for consumer goods. These are goods installed in a home and used mainly for personal, family or household purposes; the page names water heaters, air conditioning equipment and furnaces as examples.
- Existing consumer NOSIs are deemed expired. They may still appear on title documents, but the land is not affected by them.
- Contracts survive. The ban does not cancel a business's existing contract or eliminate its security interest. A business can still enforce contract terms in court and, in certain circumstances, may repossess the fixture.
- Commercial NOSIs are untouched. The province says it is not aware of misuse involving large commercial or industrial equipment.
Why the province acted
The short answer: complaints about removal fees and switching.
The page says some businesses misused consumer NOSIs by charging homeowners high fees to remove them, or by using them to discourage customers from switching suppliers. Homeowners often discovered a NOSI only when selling or refinancing a home.
What homeowners are told to do
The short answer: nothing urgent, and watch for scams.
The province tells homeowners they can check their title through the Ontario Land Registry on OnLand, for a fee. No immediate action is required. To clear an expired NOSI, for example during a sale, a lawyer can file an application to amend the register, with a law statement confirming the NOSI was for a consumer good. The page warns that companies offering to remove NOSIs for a fee are targeting homeowners, and says no one is required to pay or sign anything.
The province's separate page on door-to-door sales and home service contracts, updated June 19, 2026, adds that the mandatory consumer-rights cover page for restricted products was revised after the Act passed. We explain those door-to-door rules in a separate explainer.
What the ban does not do
The short answer: it does not end rentals, buyouts or repossession rights.
It is easy to over-read this change. According to the province, the ban stops one type of registration on land title; it does not touch the commercial relationship between a homeowner and a rental company. A homeowner who signed a rental agreement is still bound by it. If that agreement includes a buyout schedule or removal charges, those terms are still a matter between the parties and, if disputed, the courts. The business keeps its security interest in the equipment itself. What changed is the pressure that came with the title: the province says an expired consumer NOSI no longer affects the land, even where it still shows on the title record. For contractors, the realistic takeaway is that a homeowner who wants to switch to an owned water heater has one less obstacle at sale time, but still has a contract to read.
Analysis: what it means for contractors
This section is our analysis, not part of the province's guidance. It is not legal advice; contract questions belong with a lawyer.
- Homeowners still need help reading their contracts. The NOSI is gone from the land, but the rental agreement and any buyout terms remain. Many callers will not know the difference. A calm, factual page that explains what changed, and what did not, earns trust.
- Do not promise to "get rid of" a rental contract. Offer to replace or supply a water heater the customer will own, and tell them to read their existing agreement or ask a lawyer about its terms.
- Never charge, or imply you can charge, to remove a NOSI. The province has flagged that exact pitch as a scam pattern.
- Inbound marketing fits the rules. Ontario restricts selling water heaters at the door unless the homeowner invited you. Search, maps and referral marketing bring the homeowner to you first. That is how we build ownership-versus-rental campaigns for Ontario clients.
WaterHeaterNews.ca is a marketing and business consulting newsroom, not a contractor or law firm. See more Ontario context on our Ontario page, or browse the newsroom.
Frequently asked questions
What is a NOSI?
A notice of security interest is a registration on a property's land title showing that a business holds a security interest in a fixture, such as a water heater, furnace or air conditioner. Businesses registered them when they installed leased or financed equipment.
Can a business still register a NOSI for a rented water heater in a home?
Not for consumer goods. Ontario's guidance says the Homeowner Protection Act bans registering NOSIs for goods installed in a residence and used mainly for personal, family or household purposes. Commercial NOSIs are not affected.
Does the ban cancel rental contracts?
No. The province says the ban does not cancel an existing contract or remove the underlying security interest. Businesses can still enforce contract terms in court and, in certain circumstances, may repossess the fixture.
What should a homeowner do about an old NOSI?
The province says no immediate action is required, because the land is no longer affected. A lawyer can file to remove an expired NOSI from the register, for example during a sale. The province also warns about companies charging fees to remove them.