What is a
"lien"?
A lien is a legal claim to property owned by another person.
What is a
Construction Lien?
A construction lien is a claim against land by a person who
supplied labour, materials or service to an improvement being
carried out on the land.
Who is
entitled to a Construction Lien?
Any person, company or business that supplies labour, services
or materials is entitled to a lien. This includes contractors,
sub-contractors, trades, and persons supplying equipment or
machinery or persons supplying materials.
When is a
person entitled to a Construction Lien?
A person referred to in the preceding paragraph is entitled to a
lien as soon a she or she provides labour or materials and
payment is not received when it is due.
How do I
enforce a Construction Lien?
A construction lien is enforced by registering it against the
title to the property for which the services or materials were
supplied. A lawsuit must thus be commenced in the Ontario Court
(General Division). A lawsuit commenced in the Ontario Court is
not sufficient for the purpose of enforcing a lien, although one
can still obtain judgment or monies owing; you simply lose the
benefit of the lien.
What is the
advantage of registering a Construction Lien?
The advantage to registering a construction lien is that
generally the owner of the property is forced to deal with
payment problems, even if payment ought to have been made by the
general contractor or even a sub-contractor or trade. The owner
is entitled to deduct from amounts owing to a general contractor
or anyone else enough to pay an amount claimed in a lien.
How do I
register a Construction Lien?
You have to complete the appropriate form and swear an affidavit
stating what services or materials you supplied and how much you
are owed. These documents are then filed in the Land Registry
Office for the Regional Municipality or County where the
property is located.
How long do
I have to register a Construction Lien?
The process for determining the deadline for registering a
construction lien is complicated. However, once the time
expires, a lien can never be registered. It is therefore
imperative that you seek legal advice immediately if you suspect
that you may have problems getting paid.
How can I
prevent a Construction Lien for being registered on my property?
An owner can start the time limits running for the filing of
liens, and thus end the time for filing liens, by having the
project architect publish a notice or if there is no architect
by signing an agreement with the general contractor in
accordance with the Construction Lien Act.
The person
I am working for made me sign an agreement that I would not
register a Construction Lien and now I haven't been paid. Can I
still register a Lien?
Yes. The construction Lien Act states that an agreement not to
register a Construction Lien is unenforceable.
I found out
that there is a lien registered against my property from work
that was done a long time ago. How do I get it removed?
You have to apply to the court to remove a lien that has
expired. |