Glossary | Ontario Construction Lien
Ontario Construction Lien Definition
The layman definition of construction lien is the same as a builders lien. The Ontario construction lien definition only covers liens in Ontario. In other provinces these types of liens are referred to as builders liens. Protecting financial interests is the main reason why companies file a lien.
Construction liens are a risk management tool you can use to protect yourself on an Ontario job site. This type of lien is typically used in Ontario if there is difficulty receiving payment. Liens must be filed within a specific time period, which varies in each province. In Ontario you have 45 days from the date last on site providing materials, services, labour, etc. to file a construction lien. Lien deadlines in Ontario cannot be extended in any way. Here is a handy tool to calculate the filing deadline date for an Ontario construction lien.
In layman terms, if you have provided work and-or materials to a job site in Ontario that helps to improve the land, you can file a lien. Liens are usually filed in the event of non-payment. When a lien is registered it is registered against your customer and attaches to the land title of the property you worked on in Ontario.
Construction Liens are Leverage
Ontario construction liens ensure you have a registered interest on the property you are doing work for. When an Ontario construction lien is registered against the land title, the lien can delay the release of funds or the sale-refinancing of the property. Filing a Construction Lien forces your client to address the situation head on and get you to the negotiating table. An Ontario lien cannot be removed until an agreement has been met by Court Orders or it expires.
The presence of construction liens mean that further payment will be delayed to the entire project and the property won’t be able to be sold or refinanced. For example: If you are a sub-contractor doing electrical work on a house, you can file a lien against the company who hired you, and the lien is attached to the property.
Whether you are still working on site or have been off site recently, make sure you receive payment prior to your lien filing rights expire. Our lien date calculator for Ontario construction liens can help determine where you fall within your lien deadline.