How to Protect Your Rights with a Construction Lien in Ontario

 


If you work in construction, getting paid on time is essential. But what happens when a client refuses to pay for completed work? That’s where a construction lien comes in. It’s a legal claim that protects contractors, subcontractors, and suppliers who haven’t been paid. In Ontario, strict rules govern how and when you can file a lien. If you miss a deadline or file incorrectly, you could lose your right to collect payment.

What is a Construction Lien?

A construction lien is a legal notice attached to a property. It tells everyone, including lenders and buyers, that the owner owes money for work or materials. If the lien isn’t resolved, it can prevent the sale or refinancing of the property. This makes liens a powerful tool for collecting unpaid wages in the construction industry.

You can file a lien if you supplied labor, materials, or services for a construction project but didn’t receive payment. General contractors, subcontractors, material suppliers, engineers, and architects all have the right to file.

Steps to Protect Your Rights Before Filing a Lien

Before filing a lien, take steps to strengthen your case. Here’s what you should do:

1.  Keep Detailed Records – Always document contracts, invoices, and any communication related to payments. If there’s a dispute, these records will support your claim.

2.  Know Your Deadlines – Ontario law requires you to file a lien within 60 days of project completion or last work performed. If you miss this window, you lose your right to a lien.

3.  Conduct a Title Search – Before filing, confirm the correct property details. A title search in Ontario helps verify ownership and ensures the lien is placed on the right property.

4.  Send a Payment Request – Before going the legal route, try sending a formal demand for payment. In many cases, this can resolve the issue without filing a lien.

How to File a Construction Lien in Ontario

If you need to file a lien, follow these steps:

1.  Gather Information – You’ll need details about the property, the work completed, and the amount owed.

2.  Register the Lien – File your claim with the Ontario Land Titles Office before the 60-day deadline.

3.  Notify the Property Owner – Once filed, send a copy of the lien to the property owner and any involved parties.

4.  Take Legal Action If Needed – If the owner still refuses to pay, you have 90 days from the filing date to start a lawsuit to enforce the lien.

What Happens After Filing a Lien?

Once a lien is in place, the property owner has a few options:

  • They can pay the debt to remove the lien.
  • They can dispute the lien, leading to court action.
  • They can ignore it, which could delay property sales or refinancing.

A lien puts legal pressure on owners to settle debts. In many cases, they prefer to pay rather than risk legal action.

How a Title Search Helps Protect Your Rights

A title search is crucial when dealing with liens. It confirms property ownership and reveals any existing liens. Before filing, a title search helps you ensure that you are placing the lien on the correct property. If you’re a buyer, it also protects you from unknowingly purchasing a property with unpaid debts.

Final Thoughts

Construction Lien in Ontario are an effective way to recover unpaid wages. However, the process is complex, and missing a deadline could cost you. Keep records, follow legal deadlines, and use a title search to verify property details before filing. By taking the right steps, you can protect your rights and increase your chances of getting paid.

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