A construction lien in Ontario is a legal claim that can be filed by contractors, subcontractors, and suppliers to secure payment for work done or materials provided on a construction project. It is governed by the Construction Act in Ontario.
A construction lien provides security to those who have provided services or materials on a construction project but have not yet been paid. If the property owner fails to pay for the work done or materials supplied, the lien can be enforced by the contractor, subcontractor, or supplier in court. This could ultimately result in the sale of the property to satisfy the lien claim. In Ontario, there are strict deadlines for filing a construction lien. The time limit for filing a lien depends on the type of work performed or material supplied, and the role of the lien claimant on the project.
Contractors and subcontractors who have an agreement with the owner have 60 days from the last day of the month in which they provided services or materials to the project to file a lien.
Suppliers who have supplied materials to the project have 60 days from the last day of the month in which they supplied the materials to the project to file a lien.
Contractors or subcontractors who do not have a contract with the owner have 90 days from the last day they provided services or materials to the project to file a lien.
It is important to note that these deadlines are strict, and failing to meet them can result in losing the right to file a construction lien.
Additionally, there are specific requirements for the content of a construction lien, and failure to meet these requirements can also result in the loss of the right to file a lien.
A lawyer can help with construction liens in Ontario in several ways:
Filing a construction lien: A lawyer can help you prepare and file a construction lien against the property in question, ensuring that the lien is filed in a timely and effective manner.
Enforcing a construction lien: If the property owner fails to pay for the work or materials, a lawyer can represent you in court to enforce the lien and seek payment.
Defending against a construction lien: If you are a property owner facing a construction lien, a lawyer can help you defend against the claim and negotiate a resolution with the lien claimant.
Advising on lien rights: A lawyer can advise contractors, subcontractors, and suppliers on their lien rights and provide guidance on the proper procedures for filing and enforcing a construction lien.
Providing legal guidance on construction contracts: A lawyer can also provide legal advice on construction contracts, helping to ensure that the terms and conditions of the contract protect your interests and comply with applicable laws and regulations.
Therefore, it is recommended that you consult with a lawyer who specializes in construction lien law to ensure that you meet all the requirements and deadlines for filing a construction lien in Ontario.