Ontario’s Construction Lien Act
A construction lien is a charge or security on a property that can be registered on the title of the property by anyone who has supplied services or materials to improve the property. A lien prevents the owner of the property from re-mortgaging and selling.
The 3-time frames to consider when a construction lien expires are:
- Preservation of Lien Deadline
- Perfection of Lien Deadline
- Two-Year Limitation Period
The first step to pursue a construction lien claim is to register it against the title of the land. Most liens need to be registered while others need to be served.
For a contractor, the lien expires 60 days after the date on which the contract was completed or abandoned.
The time to register and perfect a lien is 150 days. The lien must be perfected 90 days from the last day it was registered.
Pursuant to subsection 36(3) of the Act, if the lien is attached to the property, the lien is perfected by issuing a Statement of Claim and by registering a Certificate of Action on the title of the property.
A Statement of Claim must be issued by the court in a country where the property is located and must be served within 90 days.
There is a two-year limitation period to set the action down for trial once the lien is perfected. If the lien is not set down for trial within the two-year limitation period, a motion may be brought to declare the lien as expired and to have the action dismissed.
AJ Law LLP can provide cost effective and innovative solutions to your construction lien concerns.