With the introduction of The Homeowner Protection Act (“HPA”), that came into effect on June 6, 2024, amendments were made to the Ontario Personal Property Security Act (“PPSA”) imposing restrictions on new Notice of Security Interest (“NOSI”) registrations. NOSI registrations can no longer be made in the Ontario Land Registry in respect of consumer goods that are used in a personal capacity. As such, NOSIs may no longer provide a reliable source to verify consumer loans and household fixture financing. A PPSR search (commonly referred to as a PPSA search) should be conducted as a primary source of verification to ensure that debtors are free and clear of any liens not only in the Ontario Land Registry but also within the Ontario Personal Property Security Registration system, as a lender’s security and priority can affect the subject property and the interest of subsequent purchasers and lenders for value.
Why is a debtor search within the PPSR System important?
In order to secure and provide notice to subsequent parties of interest, home improvement lenders may register appropriate financing statements in the (PPSR) replacing the former practice of registering NOSIs within the Ontario Land Registry. Prior to selling a property, refinancing, or other specific real estate transactions, real estate lawyers, lenders, and other legal obligators should perform a debtor search to identify any other liens registered against a debtor which may legally affect the subject property under the PPSA.
ESC’s PPSA Search Solution
- ESC’s platform offers a convenient and simplified workflow, allowing users to easily save and view Personal Property Registry search results at any time.
- ESC also offers additional search services such as property, bankruptcy, and litigation searches, enabling customers to perform comprehensive due diligence for property transactions on one platform.
Contact ESC at [email protected] to learn more or login to our Registry Complete platform to get started with PPSA searches.
