A construction lien gives those who supplied work or materials to an improvement a claim against the property itself. Lien rights are valuable and unforgiving, because the deadlines are short and strict. We act for contractors, subcontractors and suppliers claiming liens, and for owners and others dealing with liens registered against a property.
Common situations
A contractor, subcontractor or supplier not paid for work or materials
An owner facing a lien that blocks a sale or refinancing
Disputes about whether a lien was preserved or perfected in time
Holdback disputes between owners, contractors and subcontractors
Preservation. The lien claimant registers a claim for lien on title within the statutory deadline, generally 60 days from the relevant triggering date.
Perfection. The claimant then starts a court action and registers a certificate of action within a further fixed period. Missing this step ends the lien.
Vacating. An owner or other party can usually pay money or post security into court to have the lien removed from title while the claim continues.
The claim itself. The lien action proceeds in the Superior Court of Justice, often alongside related contract claims.
Prompt payment
Ontario’s Construction Act includes prompt payment rules for many projects, with fixed times for paying proper invoices and for passing payment down the chain, and a right to adjudication for certain disputes.
What happens next
Calculate the deadlines immediately, from the contract and the supply records.
Confirm the amount that can properly be claimed.
Register, perfect or respond, depending on which side you are on.
Consider vacating the lien where a sale or financing is at stake.
Questions we are often asked
How long do I have to register a construction lien?
A lien generally must be preserved within 60 days of the relevant triggering date, such as the date the contract was completed or abandoned, or the last day services or materials were supplied, depending on the circumstances. These deadlines are strict, so get advice as soon as payment is in doubt.
What does it mean to perfect a lien?
After a lien is preserved by registration, it must be perfected by starting a court action and registering a certificate of action within a further fixed period. A lien that is not perfected in time expires.
How can an owner remove a lien from title?
Commonly by paying money or posting security into court, which allows the lien to be vacated from title while the dispute continues. A lien can also be challenged if it was not preserved properly or in time.
What is holdback?
Owners and payers on many projects must retain a holdback of 10 per cent of the value of the work as it is done. The holdback protects lien claimants further down the payment chain, and paying it out too early can expose the payer to liability.
What is construction adjudication?
A fast, interim process under the Construction Act for resolving certain payment and other disputes during a project. An adjudicator's decision is binding in the meantime and can be enforced, but the dispute can later be decided in court or arbitration.
General information about Ontario law, not legal advice about your situation. Time limits can be short; if you are unsure, speak with a lawyer promptly.
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