Construction Liens

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A Construction Lien is a security interest registered against the title of residential or commercial property by any individual or corporation that has supplied labour, services or materials to a property and has not been paid in full for the same. Once a Construction Lien is registered on title to a property, the Construction Lien can actually prevent the property owner from selling or re-financing the property. A Construction Lien provides the holder of the lien with extraordinary rights and a means of collecting on unpaid contracts. In some cases, the holder of a Construction Lien, if the Construction Lien is not resolved, can attempt to have the property sold in order to satisfy its Construction Lien.

A Construction Lien can be registered by almost any person who supplied labour or materials related to construction, demolition or other improvements to a residential or commercial property in Ontario. Construction Liens are most often registered by Construction Lien Lawyers on behalf of contractors, sub-contractors as well as companies that have supplied materials to the property either directly or via a contractor.

The laws and regulations involving Construction Liens in Ontario are complex. It is imperative that a contractor or sub-contractor retain the services of a Mississauga Construction Lien Lawyer in order to insure that it receives payments of all amounts that it is entitled to after completing work or supplying materials to a property.

A contractor must file its Construction Lien claim within 45 days after the completion or abandonment of the job/contract and a sub-contractor or supplier of materials must file its construction lien claim within 45 days after the date on which the sub-contractor or supplier last supplied services and/or materials to the property. Within 45 days after the date that was the time limit to register the lien on the property, the contractor or sub-contractor is required to commence legal action in the courts by way of issuing and serving a Statement of Claim on the property owner along with the registering of a Certificate of Action against the property where the services or materials were performed or supplied in order to maintain and perfect the construction lien against the property. If the Statement of Claim initiating the action is not commenced and the Certificate of Action is not registered against title to the property within the above-noted time limit, the owner of the property may be able to have the construction lien removed from title to the property and the contractor/sub-contractor will no longer possess its secured interest in the property and will the lose the benefit of the lien. A registered Construction Lien will prevent the property owner from otherwise dealing with the property by way of sale or mortgage.

If you are a contractor or sub-contractor or a supplier of materials who has not been paid by a property owner or a contractor, please contact our Construction Lien Lawyers to assist you in the protection of your Construction Lien rights.