Glossary
Plain-language definitions of the terms that matter when you are dealing with an unfair Ontario HVAC, water heater, heat pump, or air filtration contract.
2018 CPA amendments
Amendments to Ontario's Consumer Protection Act and related regulations, taking effect through 2017-2018, that specifically targeted unfair door-to-door sales practices for furnaces, water heaters, heat pumps, air conditioners, and air filtration systems.
Assignee
A party that takes ownership of a contract or receivable from the original counterparty. In the Ontario HVAC context, the finance company that buys the contract from the original installer.
Buyout
The lump-sum amount required to terminate a long-term Ontario HVAC rental or financing contract before the end of its term and take ownership of the equipment.
Buyout vs. cancellation
Two different paths out of an Ontario HVAC rental contract. A buyout pays the company to end the agreement and take ownership; a cancellation sets the agreement aside under the 2018 CPA amendments.
Consumer Protection Act (Ontario)
The Ontario statute that governs consumer transactions, including a 10-day cooling-off period for direct agreements and the 2018 amendments that target unfair HVAC and home equipment contracts.
Cooling-off period
A statutory window after signing during which a consumer can cancel a contract for any reason. In Ontario, direct agreements (including most door-to-door HVAC contracts) carry a 10-day cooling-off period.
CPA section 43
The section of the Ontario Consumer Protection Act granting consumers a 10-day cooling-off right to cancel a direct agreement.
Default judgment
A court judgment entered against a defendant who failed to file a defence within the prescribed time. Setting aside default judgment is possible but harder than responding within the original deadline.
Depreciation schedule
The internal table used by an Ontario rental or finance company to calculate the buyout figure for an early-termination request.
Direct agreement
Under the Ontario CPA, an agreement negotiated and signed at a place other than the supplier's place of business — most commonly the consumer's home. Direct agreements carry a 10-day cooling-off right.
Finance company
The entity that holds and collects on a long-term Ontario HVAC contract after assignment from the original installer.
Fixture financing
A financing structure where the lender takes a security interest in equipment that is or will be installed as a fixture in residential property — historically the basis for NOSI registrations on Ontario homes.
Greener Homes Grant
A federal Canadian programme offering grants and financing for residential energy retrofits — heat pumps, insulation, windows, solar. Frequently misused as cover for door-to-door HVAC sales pitches in Ontario.
Misrepresentation
A false or misleading statement that induces a consumer to enter into an agreement. Misrepresentations about energy savings, government affiliation, or rebates are recognised grounds under the 2018 CPA amendments.
NOSI (Notice of Security Interest)
A legal instrument historically registered against the title of an Ontario residential property to record a security interest in fixtures attached to the home — typically rented or financed HVAC, water heater, or similar equipment.
Parcel register
An official Ontario land registry document listing every instrument registered against a property identifier number (PIN), including mortgages, easements, and NOSIs.
Personal Property Security Act (PPSA)
The Ontario statute governing security interests in personal property, including the registration of NOSIs against fixtures attached to residential real property.
Registered energy advisor
A federally certified evaluator who conducts EnerGuide home assessments — a precondition for the real Greener Homes Grant and a useful counter-reference to door-to-door 'energy assessment' pitches.
Rental contract
An agreement under which a homeowner pays monthly fees for the use of equipment owned by the supplier. The standard Ontario water heater rental and the structure most door-to-door HVAC operators use.
Rescission
A legal remedy that unwinds a contract as if it never existed — the parties are returned to their pre-contract positions. The remedy sought when an Ontario HVAC agreement is set aside under the 2018 CPA amendments.
Secured party
The party named as holder of a security interest on a NOSI or other Personal Property Security Act registration. In Ontario HVAC contexts, typically a finance company.
Small Claims Court (Ontario)
A division of the Ontario Superior Court of Justice handling civil claims up to $35,000. The forum where many HVAC finance company collection actions are brought.
Statement of Claim
A formal court filing by which a plaintiff (often a finance company) initiates a lawsuit against a homeowner over an Ontario HVAC contract. Carries a hard deadline to file a defence.
Unconscionable pricing
A pricing structure where the total amount payable is grossly disproportionate to the value of the goods or services. One of the recognised grounds under the 2018 CPA amendments for setting an Ontario HVAC agreement aside.
Unfair practice
A category of conduct prohibited under the Ontario CPA, including false, misleading, or deceptive representations and unconscionable representations. Engaging in an unfair practice is a separate ground for setting an agreement aside.
Glossary Got You Started — Now What?
A free conversation can apply these concepts to your specific contract.