Ontario may bring in new rules to make it harder to place a lien on your home

Ont. looking into 'surprise' liens on homes The Ontario government says they are acting on the growing number of surprise liens on homes by rental utility companies.

Ontario banned door-to-door sales in March 2018, but problems still arise with rental contracts for furnaces, air conditioners, water heaters, air filters and thermostats.

"Our government will not stand by and allow bad actors to take advantage of hardworking Ontarians for their own financial gain," Todd McCarthy, the Minister of Public and Business Service Delivery said in a news release Wednesday.

CTV News Toronto interviewed Kara Santokie when she bought her dream home in February. Santokie said she knew it came with a rental water heater and air conditioner, but didn't know there was also a $17,000 buyout on the equipment - meaning she had a $17,000 lien on her property.

"I was devastated actually to find out that my only asset, this house that I have saved for 10 years, that a decade of savings, that there is a lien on my property," said Santokie.

CTV News Toronto spoke with Santokie Wednesday, who said she has tried to remove the lien for the past eight months but couldn't.

"I still have a lien on my home and I have not been able to get rid of it since the last time we spoke," said Santokie.

In 2022, the province said 38,000 Notices of Security Interest (NOSIs), also known as liens, were placed on properties in Ontario.

The province has set aside the next 45 days to have a consultation process to deal with complaints to address the harmful and inappropriate use of liens.

"We've heard the cries, we've heard the complaints, we've heard the nightmare stories, and we are acting on that," said McCarthy. "What is happening is real exploitation, and we've heard some terrible stories of misuse across the province."

Dennis Crawford, a lawyer with OntarioHVACscam.com, told CTV News Toronto that many people only find out they have a lien when they go to sell their home - something he feels shouldn't be allowed.

"I have a client in Kitchener who has a $13,000 lien on his home to secure a $200 water filter," said Crawford. "My sense is the needle has moved on this issue, and the government is taking it very seriously now."

As of Oct. 17, businesses and consumers can participate in the consultation process until Dec. 1, something Santokie plans to do.

"I most certainly will be there participating in this public consultation as this can not be allowed to continue," said Santokie.

The province says it wants to deal with this issue quickly and hopes to have a plan of action early in 2024. It said all options are on the table, including new legislation if necessary to protect consumers.