Construction Lien in Ontario: Homeowner and Contractor Guide

construction lien
Ontario Construction Act 60-day preservation period 90-day perfection period 10% holdback

Construction Lien in Ontario: A Current Guide for Homeowners and Contractors

A construction lien can affect title, financing and payment, but it does not automatically prove that the claimed money is owed. Ontario’s current law uses specific definitions, deadlines and procedures. The old 45-day rules are no longer the general rule for modern projects.

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Do not calculate a lien deadline from this article alone.

The triggering date can depend on substantial performance, completion, abandonment, termination, last supply, annual holdback notices, subcontract certification and transitional rules. A missed deadline can destroy the lien remedy. Contact an Ontario construction lawyer immediately.

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What a construction lien is

A person who supplies services or materials to an improvement may have a lien under Ontario’s Construction Act. The lien arises when the person first supplies those services or materials. Depending on the project and claimant, it may attach to an interest in the land and also operates as a charge against statutory holdback and certain unpaid contract amounts.

A registered claim for lien is not a judgment. It is a preserved claim that still must be proven or resolved. The amount can be challenged, reduced, discharged, vacated, settled or defeated.

A lien does not automatically mean the homeowner owes the claimant directly. The owner’s personal liability to downstream claimants is generally tied to the holdback the owner was required to retain and, in some cases, additional amounts still owing in the construction pyramid. The exact exposure depends on the Act and facts.

Who may have lien rights?

Contractors, subcontractors, workers, equipment providers, consultants and material suppliers may qualify when their services or materials fall within the Act.

Who may not?

Not every unpaid invoice creates a valid lien. The claimant, supply, property, timing, contract chain and amount must satisfy the statute.

The current Ontario lien deadlines

60 days Typical modern preservation period after the applicable statutory trigger
90 days Period after the last possible preservation date to perfect a preserved lien
2 years A perfected lien generally expires after the action’s second anniversary unless a trial step occurs

For a lien that attaches to land, preservation generally requires registration of a claim for lien on title. Perfection generally requires commencing the lien action and registering a certificate of action.

The 60-day clock does not always start on the claimant’s final invoice date. Contractor and subcontractor triggers differ and may include:

  • publication of a certificate or declaration of substantial performance;
  • completion of the contract or subcontract;
  • abandonment or termination;
  • the claimant’s last supply;
  • certification that a subcontract is complete;
  • publication of an annual holdback-release notice for services or materials included in that notice.
Old 45-day articles remain all over the internet.

Ontario changed the main preservation period to 60 days and the perfection period to 90 days for the modern regime. Older contracts and transitional situations can still require separate analysis.

Preserving, perfecting and proving are three different steps

Confirm that a lien exists

Determine whether qualifying services or materials were supplied, the proper amount, the correct construction pyramid and the applicable statutory regime.

Calculate the preservation deadline

Identify every possible trigger and use the earliest date required by section 31. Do not rely only on last attendance or invoice date.

Preserve the lien

Where the lien attaches to land, this generally means registering the prescribed claim for lien against title before expiry.

Perfect the lien

Commence the lien action and register the certificate of action within the applicable 90-day period.

Move the action forward

A perfected lien can later expire if the action is not set down for trial or an order for trial is not made within the statutory period.

A lawyer needs time to investigate title, parties, dates, the legal description, invoices and statutory forms. Calling on day 59 is gambling with the remedy.

The 10% holdback: what homeowners must understand

Each payer under a contract or subcontract where a lien may arise must retain a basic holdback equal to 10% of the price of services or materials as they are actually supplied. The obligation applies whether the agreement uses progress payments or one payment at completion.

Illustrative invoice Basic holdback Amount before other deductions Important qualification
$100,000 before HST $10,000 $90,000 The invoice, HST, lender advance, deficiencies and written lien notices can change the actual cash movement.

The holdback is not simply a final deficiency fund. It protects the lien regime. The owner should separately preserve contractual rights for deficient, incomplete or disputed work.

Owner liability is not automatically unlimited

If a contractor fails to pay a subcontractor, the subcontractor may preserve a lien against the property. But that does not make the homeowner automatically liable for every dollar of the subcontractor’s contract. Section 23 limits owner personal liability in important ways, commonly by reference to the holdback the owner was required to retain.

Paying the contractor in full without retaining holdback can create avoidable exposure. A homeowner should not release holdback merely because the contractor says all trades have been paid.

Mandatory annual holdback release from January 1, 2026

Ontario now requires annual release of accrued basic holdback after each anniversary of the date the contract was entered into.

  • The owner must publish a prescribed annual-release notice no later than 14 days after the anniversary.
  • The notice identifies the holdback intended to be paid and the intended payment date.
  • The notice must be published on an approved construction trade news website.
  • The owner generally pays the applicable accrued holdback at least 60 days but no later than 74 days after publication, unless the statutory lien conditions prevent payment.
  • Contractors and subcontractors then have corresponding downstream payment obligations.

The prescribed form is Form 6, Notice of Annual Release of Holdback. The approved publication sites named in the regulation are the Daily Commercial News, Link2Build and Ontario Construction News.

Old contracts may not describe this procedure.

A clause saying all holdback is retained until the end of a multi-year project may conflict with the current mandatory annual-release regime.

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What happens when a lien is registered against a home?

A registered lien can create serious practical problems. A lender, buyer, title insurer or lawyer may require it to be discharged or vacated before advancing funds or completing a transaction. That is a commercial response, not an automatic statutory rule that every lender must follow identically.

The homeowner should immediately:

  1. obtain the registered claim and current parcel register;
  2. notify the construction lawyer, lender and title insurer where applicable;
  3. identify the claimant’s contract chain and supporting invoices;
  4. calculate the holdback and amounts still owing;
  5. preserve all contracts, invoices, texts, emails, site photos and payment records;
  6. avoid paying or releasing holdback without legal advice;
  7. consider settlement, discharge, expiry, security or a court motion.

Do not assume an invalid lien disappears from title automatically. A discharge, release or court order may still be required.

Vacating a lien so financing or a sale can continue

Section 44 allows the court to vacate a lien from title when money is paid into court or acceptable security is posted. The lien dispute continues against the security instead of the land.

For the without-notice route described in section 44(1), the security is generally:

100% Full amount claimed as owing in the lien
+ 25% Security for costs, subject to the statutory cap
$250,000 Current maximum for the costs-security portion under that route

The court can also order a different reasonable security amount in appropriate circumstances. Posting security does not admit that the lien is valid or that the claimant will win.

What homeowners should require before progress payments

From the builder

  • Proper invoice and milestone support
  • Updated change-order log
  • Current allowance statement
  • Statutory declaration where required
  • List of major unpaid trades and suppliers
  • Evidence supporting disputed or unusual charges

For the owner’s file

  • Signed contract and all schedules
  • Drawings identified by revision
  • Invoices and proof of payment
  • Holdback ledger
  • Title searches and lien notices
  • Inspection, deficiency and completion records

A statutory declaration can help with payment administration, but it is not a guarantee that no lien exists and does not replace title searching or legal advice.

What contractors and trades should do before the deadline

  • Identify the legal owner, contractor, subcontractor and property description early.
  • Keep signed contracts, change orders, delivery tickets, timesheets and invoices.
  • Track the true last supply date but also monitor substantial-performance, completion, termination and annual-release notices.
  • Do not return only to perform trivial work merely to extend a deadline.
  • Do not wilfully exaggerate the lien amount.
  • Consider contract, trust, prompt-payment, adjudication and ordinary court remedies in addition to the lien.
  • Contact counsel early enough to search title and prepare the correct forms.
Losing the lien does not necessarily erase the underlying debt. Other contractual or legal remedies may remain, but limitation periods and collection risk still apply.

Common construction-lien myths

Myth More accurate statement
Anyone can lien for any unpaid bill. The claimant and supply must qualify under the Act, and the lien must be calculated, preserved and perfected properly.
The deadline is always 45 days. The modern general regime uses 60 days to preserve and 90 days to perfect, subject to triggers and transitional rules.
A lien proves the homeowner owes the amount. A registered lien preserves a claim. Liability and amount still must be established or resolved.
The owner is responsible for every unpaid subcontractor invoice. Owner exposure is affected by holdback, amounts owing, the construction pyramid and whether the lien is valid.
Holdback can be kept forever for deficiencies. Statutory holdback follows the Act’s release rules. Deficiency rights need separate contract treatment.
Paying security into court means admitting the lien. Security can move the claim off title while preserving the dispute.

Contract Centre and related guides

Ontario Construction Contract Centre Live Ontario Contract Checker Live 25-Item Contract Checklist Live Free Contract Template Live Construction Loan Draw Schedule Live Estimate Inclusions and Exclusions Live Understanding Builder Allowances Live Real Cost of Upgrades Live Ontario Construction Holdback Planned Lien Filed Against a Homeowner Planned Final Payment and Deficiencies Planned Substantial Performance and Completion Planned Construction Dispute Resolution Planned Contractor Abandoned the Project Planned

Construction lien FAQ

How long do I have to file a construction lien in Ontario?

The modern general preservation period is 60 days after the applicable statutory trigger. The trigger differs by claimant and circumstances. Get legal advice immediately rather than calculating from an invoice date.

What does it mean to perfect a lien?

Perfection generally means commencing the lien action and, where the lien attaches to land, registering a certificate of action. A preserved lien normally must be perfected within 90 days after the final day on which it could have been preserved.

Can a subcontractor lien my house even though I paid the builder?

A qualifying subcontractor may preserve a lien if it remains unpaid. Whether and how much the owner is exposed depends on the owner’s holdback, amounts still owing, the lien’s validity and the Act.

Can I use the 10% holdback to repair deficiencies?

Not simply because deficiencies exist. Statutory holdback protects lien claims and follows the Act’s release rules. The construction contract should separately address deficient work, correction costs, set-off and final payment.

Will a construction lien stop mortgage advances?

It often causes a lender to suspend or condition further advances because title and priority are affected, but the lender’s response depends on its documents and risk requirements.

How can a lien be removed from title?

It may be discharged by the claimant, declared expired, vacated by court order, settled, or moved from title to court-held money or security. The correct route depends on the facts.

Does an invalid lien disappear after the deadline?

Not always automatically from the parcel register. A discharge or court order may be required to clear title even where the lien has expired.

Do not wait for the lien to become a financing emergency

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Planning a custom ICF home in Simcoe County or Georgian Bay?

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Reviewed July 29, 2026. General educational information only. This page does not calculate a deadline, preserve or perfect a lien, clear title, or provide legal advice.

 

99 Comments

      • a contract verbal or otherwise still needs to meet the test for solidifying that contract, being:

        1 – offer
        2 – acceptance (unequivocal)
        3 – consideration
        4 – true intentions (for lack of better words)

      • Wrong. No court will enforce some BS verbal contract because it’s hearsay. There is also an explicit need for a written contract for work over $1500.

    • hi , i hired finish carpenter to work for $12000.00 and finish with time line but he didn’t and was paid $7000 and left the job ,while did less then half of the job and without any contract he registered the line , what can i do thx

    • can an architect place a lien on a homeowner’s property if the homeowner doesn’t want to pay the architect due to delaying a homeowner‘s project for years and the homeowner having huge added cost due to this?

    • A contractor, drywaller owes me 1400 for labour. I have photos and sent him a invoice for one property. Two others exist. He is not going to pay me. Can I put a lien against the property. What do I do? Who do I call?

  3. We are a limestone company in the following situation.
    We had an oral contract with the builder, who paid a small deposit. Being urged by the builder, we manufactured pieces worth $25.000. However, the builder has refused to accept the delivery because of the unspecified problems with the clients (house owners). Recently the former has severed all contact with us. We have been storing the pieces for over a month now. The fact that we don’t know anything about the owners significantly complicates the situation. We have unsuccessfully tried finding out about the owners and contacting them. We have also considered enforcing shipment on them but the premises are closed and seem to be empty.
    The builder gave us $ 10.000 deposit, the pieces we manufactured are worth $ 25.000, plus the price of storing the pieces.
    What would the best course of action be?

    • I am not a lawyer but I think that you have no course of action. The best solution for you would be to sell your stuff to someone else. What exactly did you manufacture?

      • I know this is too late, but Olli would have been able to make a lien claim.

        Read the cases of Central Supply Co. 1972 Ltd. v. Modern Tile Supply Co. ad also Sunview Doors Limited v. Pappas

        And Olli, most lawyers will do a free consult. Best to talk to a lawyer or now with recent changes to the Construction Lien Act, if the amount owed is $25,000 or less talk to a knowledgeable paralegal experienced with construction law.

    • You have a couple remedies. You can try and enforce the contract with the builder or you sue them for breach of contract. In your situation, the most likely solution is to sell your goods and keep the deposit. If the goods sell for under 15,000.00 then you can seek to recover the difference from the builder. In this case you wouldn’t have a construction lien.

    • I don’t have a response to your question but I live in Toronto Canada and if you service Toronto I would appreciate you telling me the name of your company as I will be building a new home and will require limestone for the construction.

      Thank you

      Lou

  4. Can a construction lien be placed against a government building? I subcontracted work from a commercial company that had a contract with the company that won the bid to oversee the renovation of a government building.

  5. I hired a designer in Ontario to design a house, verbally it was agreed to have the project finished in 3 months, it took over one year. Can a designer put a lien on the property for the unpaid balance which is 25% of the total. Can I sue the designer for delays and costs associated with that if the deadline was agreed verbally, but written contract has no deadline. Thanks JP.

  7. I’m a supplier who was working for a contractor on a commercial property. The tenant (a convenience store), paid the contractor who has failed to pay all the suppliers. The contractor cannot be located. Can I lien against the property even if it was a commercial tenant who entered into an agreement with the contractor?

  8. we have a ccd1 2008 with a contractor for a porject in Ontario canada
    he failed to notify us in writting and give 3 days notice to correct defficiencies. and asked us to leave site then continued to modify our works without our permssions and or directions form engineers(ours our design)
    i say he breeched the contract and we should be compensated any costs and for same if any.

  9. I am a contractor hired by a custom home builder to frame 2 houses. We have a very detailed contract signed by both parties. The contract sights several milestones once completed I would be able to invoice. The last invoices the contractor failed to pay in full sighting the milestones were not a 100% completed. He is correct however due to design mistakes corrections needed to be made to fully complete certain milestones, furthermore additional work for future milestones was done but not recognized. I was then informed that the contractor felt he paid out more monies then work completed at which point we stopped all work trying to resolve the matter. After several days no progress was being made so I went thru the entire project to itemize how much work was left put hours and dollars against my findings. I came up with $10,500.00 of labour left to be paid out added 25% for a buffer which brought it to about $13,200.00. With extras total amount outstanding was $31,800.00. I emailed my findings to the contractor with no response. Several days later I emailed the contractor to try and resolve the matter at which point he informed me that he has terminated the contract due to me breaching it. I have met with him since to seek money from him and tells we are even. The contract states that if either party feels there is default by the other party they in turn shall notify the other party by registered mail a default with the contract and allow 7 days to correct the default. If this is not done then it would constitute a breach and give way to seek compensation. At no point has this happened. These are both very large renovation. I feel I am owed money and am wondering if a construction lien is possible.

    Thanks

  10. can the home owners also put a lien on the contractor’s house? If the contractor refuses to refund the deposit for unfinished work, what’s the best formal action that can be taken?

  11. We hired a company to install a new kitchen in a new home, was told it would be a 2 day install. Cupboards delivered on February 27 and it is still not completed. Last work(minimal) done was March 27, email March 30 stated they were waiting for replacements which would be in the following week. No contact or work done since then. Today they have surfaced, want to do some work next week. I have since hired someone else to complete the project. I have paid 50% of the project, are they entitled to anything else? Can they sue me?

    • Hi Tammi, we are in the same boat. Our kitchen contractor took 4 months to install after telling us it would take 3-4 days. He got angry when we asked him for an installation schedule so we could schedule other trades around him. We treated with respect and we feel he purposely extended our job and did a bad job to get back at us for asking him to be accountable. The kitchen remains unfinished with major deficiencies outstanding that are the contractor’s responsibility to remedy. We have sent a demand letter, but are getting the run around from his paralegal and no further contract from the contractor. We have paid 90% of the value of the contract. According to the Construction Lien Act, the contractor has 45 days to file a lien. To be sure you’re in the clear, it would be wise to consult a lawyer just to be 100% certain. You can attempt to sue him in small claims court. Whatever you do, do not let him back on your property or that 45 day thing starts over again!!! Another option is to file a complaint with the Ministry of Consumer Affairs and provide a detailed review on both Homestars.com and TrustedPros.ca to protect other people from hiring this person/company. Seems there is nothing out there to protect the consumer!!! This Act needs to change!

  12. Split a fence with my neighbour who agreed to pay half, job is done, now he refuses to pay, I have paid the contractor in full, is it possible for me to place a lien on his house?

  13. how do I know if the contractor has paid for materials used in building my addition, and how do I know that the suppliers will not put a lien on my home?

  14. Would it protect me from liens if I get a signed paper from every subcontractor that they were paid in full (after 45 days).
    How to document subcontractor abandoning the site or not performing up to standards(OBC).
    Thank you

  15. When a lien is placed on your property, what kind of notifications do you (the homeowner) receive? We are well past the 45 days at this point, but not sure if it’s possible that he could have filed and we were not advised. Here’s the backstory:

    We paid out our contractor for a bathroom reno in full and he disappeared/stopped corresponding March 31/17, on a job that was supposed to be completed Dec 21/16. Up until that point he was on site and/or in contact with us daily. When he stopped showing up and corresponding (mostly via text – all saved) it was 1 day after we paid out the final balance (stupid, I know) because he claimed he had a personal emergency and was in desperate need. There were still many parts of the job that were incomplete – shower drain not installed, grout not finished, caulking incomplete, room not painted, drywall not patched, etc. We hired another contractor to finish off what we could not handle ourselves with the help of handy-family-members.

    Today (July 11/17) he reached out casually saying that an electrician (who is a personal friend of his) that he brought in to do some of the work had “brought something to his attention” and wanted to speak about it in person next week… Our assumption

    Thanks so much!

  17. Hi,
    i have placed a lien on town property which was lent out to a developer in order to put up a sales office for 7 building project which will take for the next 10 years, The town is now claiming that they will remove the lien as they have no direct contracts with any of the trades hired for putting up this sales center & its their land not the developers land.

    The Town claims that they have lent this property out to the developer because it is in alignment with the towns revitalization plan to boost the city.

    The 7 buildings are now sold out, the development of the first phase is set to start, and it will be developed on the adjacent land that the lien is on. The developer is not budging on paying any time soon. & i think the town doesn’t want to push the developer on settling the liens, infact i think the Town is on the developers side as these projects are to boost up the city.

    I have perfected the lien & have judgment against the developer, infact they never put up a defense & just ignored any correspondence from any of the lien claimants, there are about 5 liens on this land (im the 2nd) all associated to the sales office.
    What do you think my chances of collecting are, does the town have any right to remove the lien without forcing the developer to pay.
    also, once the sales office is removed the same land will be used to develop future phases of the “revitalization project”. Can they develop on land that has a lien, can a developer even be granted a building permit?

  18. We are a product manufacturer and have a subcontractor to install the product on a commercial building (commercial owner is paying us in full – we pay the subcontractor). Question, does the subcontractor put a construction lien on the commercial building?

    Thanks

  19. How do I lien a customer for non payment..It is close to the 45 day mark and I’m getting stressed with the customer saying he will call me back or his secretary saying he is not in when his high end car is sitting the parking lot..Why is it only rich people that don’t pay their bills? I have worked with many middle class and even some that could not afford but the made it work and happily paid their bill.

  20. Hi. I hired a contractor to renovate my bathroom. Total gut, all new. The work is considerably sub-par, to the point that I am considering hiring someone else to rip out all of the tile, including the floor, and re-do it all. I with-held final payment from the contractor, as he did return to try to make it “right”, which included but was not limited to re-grouting some areas in the shower with a different coloured grout, and re-caulking some areas, etc. Honestly, it is really, really bad. Now he is threatening to put a lien on my house. I do not trust him to do any-more work. Should I just let him take me to court and show pictures of his shoddy work? Just not sure what to do…I feel bad…but his work is just so bad. Is that my fault for hiring him in the first place?

  21. I am a small contractor in Nova Scotia. A regular customer had a crisis. She had water damage in a condo she owned in Toronto. She needs to sell the Condo. She said it would take about 10 days. I agreed to drive with her to Toronto with a helper. It was agreed I would charge her $500 per day for myself and my helper. When we got there, instead of fixing water damage, we found her tenant had died and was not found for 3 weeks. The condo corporation had demolished the interior to get rid of the odour. It was an 18 day project of 12 hour days. When completed she only could pay me $3,000.

    As a Nova Scotian, can I put a lien on her property in Ontario?

  22. EXAMPLE A HANDICAP LIFT AND CONSTRUCTION –IF A GOVEMENT FUNDING AGENCY PAYS FOR THE PROJECT TO CONTRACTOR WHO RESPOSIBLITY FOR ITS PAYMENT TO CONTRACTORS.WHERE IN THE ACT IS IT MENTIONED ABOUT CROWN AND MINISTRY FUNDING . THEN CAN A THE CONTRACTOR HAVE A LIEN ON THE PROPERTY..
    THANKS..

  23. I had a quote for $2k to complete a landscaping job. The contractor then said it would be $3900 and I agreed. The job was supposed to include grading and sod
    but the contractor only did the grading. I haven’t made any down payment and everything is verbal, and we disagree on what was committed. Any advice.

      • I am a contractor in Ontario, have very good repute in the town I work. I am trying to keep my story brief so please excuse my writing skills.

        I took a Basement renovation job with reference of my friend, I sent them the quotation and schedule of payments (stage by stage) by email, they wanted some change, I revised it and resent it to the home owner. They verbally approved it. No written agreement was done!

        Work started, Framing HVAC, Insulations, 5 new Windows, 1 Exterior door, Underground and above ground plumbing, electrical were completed and passed by the inspectors from the town. From the very first payment they were a bit hesitant mentioning they are investing in their new trucking company, and have to buy new trucks to add to their fleet,but they will have money to pay us at the end of the project. I told them we can’t work like this, and better to stop the work for now till you arrange the cash flow for the project

        They kept appreciating the work and requested us not to stop and they will pay us the money after completion of the next stage (Drywall), We did it.

        Once again they couldn’t pay the money saying they will be able to do that after the next stage. I picked up my stuff and left. They owe me 9500. I sent them a text after 2,3 days that if they will not pay me, i will start the next job in line, and they will be responsible for the delay, and I will put lien on their property to recover my hard earned money.

        After one day I got a call from the detective that a complaint has been lodged against me that I have stolen 6k from the bedroom of the homeowners. I was shocked, went straight to the police station, told him the whole situation. He reported in my favor. I never had these kind of customers before, never wanted to put a lien, but after their complaint now I want to pursue it.

        The customer couldn’t accuse that the work wasn’t up to the mark because the city inspectors were there to inspect the quality of work.
        The customer couldn’t say that the contractor took more money and didn’t complete the job because we signed the paper as we collected money .
        The customer couldn’t complaint that the work was lingered on and the contractor delayed the project because it went as per schedule.

        I never had these kind of customers before, never wanted to put a lien, but after their complaint now I want to pursue it.

  24. I provided a purchase order to someone for a job. He ultimately never signed the purchase order back but indicated via email that he would do the job. It needed to be done by a Wednesday. After asking him if he could do it on a Tuesday via email, he did not respond. I called his office 3 times over 2 days and he did not respond then was told he was unavailable.
    On the Tuesday, day before the deadline, I scrambled to find another company to complete the job which they did.
    This first person is now telling me that I owe them for the job they would have done and they are going to put a lien on the job if I don’t pay the entire amount.

    My question is – can they put a lien on the job if they never actually did anything?

  25. We hired a contractor to renovate our entire basement. He had some kind of ongoing dispute with his plumber, and upon completion of the project, there was a major leak behind the wall in the shower. Now, the grout is cracking in the sill and pan, as I assume the 2 X 4’s are swelling due to being saturated with water. I have kept my 10% holdback, but after soliciting several plumbers to estimate repair costs, they are all much more than my holdback. Now…. a sub-contractor who I never even met, nor spoke to, but who installed a countertop in the laundry room is demanding payment, as the contractor has not paid him. Our contracgtor has told him that he can’t afford to pay, due to our holdback. Can the counter installer place a lien on our property?? The installation of the countertop is clearly spelled out in the contract to be completed by our contractor.

    • The short answer is yes. Anyone that supplies work or material can place a lien for not getting paid. However, your comment raises a question. Does the agreement spell out that all the work will be done by your general? Does it say that he/she will not subcontract any portion of the work?
      If it does, you may have a way out. Please consult a lawyer.

      As far as your leak repair costs are concerned, I doubt it can be that much. It does not cost much to cut out a piece of drywall and do a repair on plumbing pipes. Any handyman can do it. I am sure that 2x4s will dry out as soon as the leak is fixed.

  26. We hired a contractor for doing a full renovation worth 200K. But since the begining the contractor was not doing enough work to finish the project which he promised to finish within 2 – 3 months. He didn’t had enough people to work on that project.
    But has was behind us whenever the payment dates occurs and we paid more than 60% for doing around 25% work. That means we paid as per the contract and we were supposed to give the last amount after the completeion of contract. But he was looking for more money, which we cannot give becuase he wasn’t doing any work.
    After waiting for long 5 months we let him go, that’s what he was looking for. But now the kitchen supplier, electrician, plumber everybody is behind us for money and somebody put a lien in our property. This is unfair, because how do we know whether the contractor paid them already or not. If the law is favourable to them , then anybody can do these kind of cheating. Is there any way we can put a lien on contractor’s property for not finishing the project and eloping with our money?

    • Wow! Sorry for your troubles. Contractors like that give us all a bad name. This should be a warning to everyone to use due diligence when choosing someone to work on their home.
      You may check who and when put a lien on your property by checking with land registry office in your area. I doubt that anyone is “cheeting” as they would not go through the extra expenses by placing a lien. Lien has to be “perfected” and is void after 2 years unless the “Statement of Claim” is filled. For that, you need a lawyer and some more extra expenses.
      And no, you can not put a lien on his property.

      • Thanks. There must be some law to protect these kind of false leins to harass homeowners? How does law protect homeowners against these pressure tactics? Where can owner present his/her arguments that don’t owe anything to contractor? What documents are required to be presented by contractor to prove his/her point (perfecting the lein)?

  27. My son is a concrete foundation contractor and is building his own home in Ontario. He had to finance the construction. He does a lot of the work himself and buys most of the materials. He’ll hire friends when he needs labour. He’s only needed three contractors, for excavation and septic, for the well and for the countertops. He’s finished except for the exterior which he’ll do.
    When the mortgage company makes a progress payment, 10% is held by my son’s lawyer presumably as a lien holdback. Nothing has been paid out and the balance is now $30,000. The liens have all expired. When can my son claim the holdback held in trust by his lawyer and how does he do that?
    Thank you.

  28. I have just got a construction lien against my home. The contractor didn’t complete the job and I have recorded conversation of him stating that he didn’t finish the project and yet he put a lien in my home. I also have text messages that he knows that his work failed. Was he legally able to put a lien on my home??

  29. I did about 3000.00 dollars worth of painting, caulking and filling at a cottage for a individual who owns a business in the area that I live. After hearing from another contractor that this individual would not pay him the full invoices amount (less than half actually), I spoke with the owner and he has strong intentions to do the same to me.

    Can I place alien on both the property and his business or just the property?

  30. Thanks for sharing Information. Nowadays it is necessary for every laborer to be aware of construction lien act to get rid of injustice. Again thanks!!

  31. How would the home owner know if a lien is placed by contractor? This is required so home owner can present his case and defend? If the contractor doesn’t inform the home owner of lien, would the court of any other body inform owner, so owner can defend in cases of false construction lien used as pressure tactics.

  33. A subcontractor did not finish his job on our renovation job completely. Therefor we agreed with the General contractor to withhold approx. 20% of his final invoice, which included the entire scope of work + extras (which nobody had agreed on before). After a back and forth between the GC and the sub the sub registered a lien against our property. As to my understanding the sub now has to perfect his lien. Could you please let me know if there is a hearing or how we can fight this lien? The sub still doesn’t want to remedy the deficiencies and we will have to pay somebody else to do so.

    • There is no hearing to perfect the lien. However, shouldn’t your general contractor deal with this? After all, he hired the sub to do a job.

  34. Is there a direct correlation between a 10% hold back and the 45 day lien period? I understood the 10% hold back is good for 30 day after substantial completion of which the rectifier of the job will put a value of outstanding items and the rest paid. The 45 days is the time period to register a lien for subs, suppliers and contractor. Two different things.

  35. Hello,

    My friend is a subcontractor doing the plumbing for a big project and his contract with the contractor has a fixed price with 5 milestone payments plus initial 15% on signing of contract. His team has completed 4 milestones with proof of completion but had been paid nothing. The 5th milestone still uncompleted but his has no money.Can he register the lien against the property for the 4 milestones he already completed? Thank you so much for your help!

  36. Hello, does the ownership of construction material belong to the homeowner the moment the construction materials have been delivered to the home?

    In the case of a contract fall-out, and the contractor decides to leave the project, is it permissible/lawful for the contractor to enter the homeowner property and take back the delivered construction materials without expressed permission from the homeowners?

    • The agreement should have a clause about the ownership of materials. Something like: ” The Cost of the Work shall include:
      1. Costs of materials incorporated in the Project, including transportation and deposits for advanced ordering. All materials shall become the Owner’s property at delivery. At the completion of the Work, any amounts realized from material returns shall be credited to the Owner as a deduction from the Cost of the Work.

  37. My contractor didn’t finish the job and made errors, in the end we agreed I would pay him $100.
    Twice now he has refused the payment. First he refused an e-transfer and 2nd he refused to sign a conditions agreement to drop the legal pursuits including liens.
    Can you put a lien for $100 even when the client has tried to pay, TWICE?

  39. Can a contractor put a lien on our property even if the funds are garranteed and sitting there in trust just waiting for Lawyer to check if there are any liens from subcontractors??? Ontario.

  40. How long can a lien remain in your home? We have been in litigation for almost 3 years and the contractor does not have a leg to stand on. We fired him after him taking excessive time to complete a job not to mention his negligence and lack of duty if care. We’ve been through discoveries and its evident he’s lying and was assigned 8 pages of undertakings which he has not submitted yet he’s not yet dropped the case. The lawyers are sucking us dry and I don’t know how much longer we can continue to pay. 😓😓

  41. I did a job for a home owners son. Dug out soil and installed 50 tonne of a gravel and drainage around outside. He just asked me come and do it didn’t ask for quotes. The way he acted money was no object. He said if we need more material just get it. When I text him amounts after first day of work. He text me back and said he was shocked and didn’t want to pay that much. Not sure what to do. The amount owing is $3200

  42. So here is my issue a so called friend of mine talked me into doing a house with him..He was to supply all the material and i was to supply the labour..While I was to do the work I was to live in the said house cover the mortgage and bills each month while doing the renovations as well as work my reg 12 hours a day straight nights job. Then when the house was done we were to sell it and split the profits.Now that the house is with in two weeks of finishing he has put it up for sale..The problem is now he is not willing to slip any of the profits with me after I have done all the work as well as pay the mortgage and bills for the last 16 months..What can I do as he is trying to sell the house before I can do anything..

  43. House next to me is under construction. Total gut job. They have also Jack hammered the basement perimeter to install a weeping tile system.This house has always leaned back from the front with a twist to the side.
    This house used to graze my upstairs bathroom peak however since construction it is now crushing my shingles on this peak. There have been no permits obtained and the city has put up a cease work until permits are obtained. My question is how do I protect myself and my property to be sure the lean is addressed.

    Thanks Donna

  44. I was hired by a company as a sub contractor and didn’t get my pay. It is over 45 days since that and I can’t find the contractor. Can I still put a lien on the property I worked on?

  45. Ihi there, I did some interior water damage repairs on ceiling primed and painted and refinished stairs samded and 3 coats varsthanefor a couple in order for them to put house on the market , i have called them and phone was didconnected , left cards on door to plesae call me to no avail I had an agreement signed to be paid when house was sold . I noticed there is a sold sign on there property almost a year later but nobody has contacted me still even after keaving a note, can I lein it still if drop off updated invoice ? All material and labour I supplied to help them so they could even list it ?? Thank you for your time

  46. I purchased a house in May 2018 in Cornwall, ON – a lien search was conducted and it was clear.

    It turns out that previous owner (in his 80’s) had signed a contract with Ontario Energy Group for an AC unit (yes OEG is under investigation for illegal business practices) and did not disclose contract (apparently he continued to pay the bill until Sep 2019).

    Now I am being harassed for payment (now at ($800+) and I have confirmed that OEG placed a lien on my property in Sep 2019 (4 years after the AC unit was installed).

    Is this legal? What are my rights? They want a ridiculous amount ($14K) for a 4 year old AC Unit!!!

    Thanks in advance for help.

    Cheers!

    Bob

  47. I have a renovation contract with a general contractor who decided to subcontract some of the work. I was never involved in the negotiations with the subcontractors nor consulted and was never made aware of the identity of the subcontractors nor of the value of their contracts. Today, I have received a notice from a lawyer requiring payment in with 24hrs of an invoice from a subcontractor charging over $18,000 strictly for labour to install 900 sqft of radiant electric flooring. This is abusive charges and does not make sense as it is twice the value of the material ! How can I fight to prevent the registration of a lien on my property as I was not aware of the existence of such abusive charges? How can I prove that the last day of work of this subcontractor was December 16, 2019 – more than 45 days since completion of the subcontractor’s work – therefore a lien cannot be registered. Thank you for your help. Daniele

    • You need to contact your lawyer as soon as possible. I would like to have been of more help, however, I am a builder, not a lawyer and can’t give you legal advice. I just hope your contract is clearly written and you can prove your case.

  48. I have a question I have hired a framer to frame a custom home

    There’s about 9 days left for completion date of the entire project and he still hasn’t put on the plywood for the second floor

    It’s states in the contract that second payment should be made upon completion of second floor but he Is now requesting that payment once he only puts up the plywood for the floor only no walls or anything so second floor is not complete with exterior walls neither interior walls

    Also contract states the price is based on 3-4 framers working daily on the site most of the time he shows up by himself or with another guy but never showed up with 3 or 4 guys.

    If I refuse to pay him until all the second floor is completed and we get into an argument and stops showing up can he still be able to put a lien on the property

  49. I am the owner of a freehold Townhouse property in Newmarket Ontario.
    My neighbors decided to change their roof shingles. After they consulted with me I told them I do not need to do this job because I already fixed them. After three months the roofers came by and change my roof. At that moment a third party tenant was residing in my property and he already mentioned the roofers that they should take permission from me but they neglect to do that.
    They send me a bill and asked me to pay the bill. I refuse the payment.
    They put a lien in my property and registered in the supreme court for about one and half years.Now I need to remove my mortgage from Blender to Alender due to lower interest.
    My question is, did they have the right to register a lien on my property?
    If not How can I remove the lien from my property?

  50. I owned a commercial building and had work completed.
    I had financed an HVAC system during this reno.

    I unfortunately claimed BR in 2008 and received my discharged in 2009.

    This finance company was included in the BR and did not dispute this in the 30 days after receiving notice.

    Apparently finance company placed lien on my own residence, not at the location of renovations (which was sold in 2011) and it was well passed 45 days since service was completed. some payments were made.

    I have never actually been contacted by Finance company about payment and I found out about lien when applying for a government program.

    The original amount wad 15,000 .. It is now over 60k.

    Is the lien valid when it stipulates incorrect information like address of work completed? If the BR notice was not responded to?

    Can finance company seriously not try to collect or inform me of outstanding debt and simply wait (13 years now).
    This company will not respond to any communication inquiring about lien. I am not certain if action with Ontario Courts was ever started as I didnt receive any documents or have not been forced to sell hone to pay lien.

    Your help is appreciated.

  51. Contracts are essential to any business. While oral agreements are generally enforceable, written ones are easier to prove. Great contracts have a fair allocation of risks across all the parties, which helps mitigate the risk and reduce disputes. It should clearly define terms and conditions that protect all the parties.
    You may also read my blog about Simple Steps for Preventing Construction Claims
    Thank you.

  52. We’re hired a contractor to do some floor works. There was no signed contract or agreement. We’ve been having issue with his work since the beginning. There has been a lot delays (almost 3x of the original estimate time) and quality of his work. We had to buy extra materials to fix some of the mistakes his people made. Finally, once again, his people had screwed up the last major piece of the work which now will cost us another $8k or more to redo. We have already paid 75% of the total and now he’s threaten to put a lien on our house if we don’t pay the last 25%. Funny thing was he has sent us an invoice showing more than double of the 25% in balance, even though he had texted me before with smaller amount. We had offered him multiple chances to fix the issue but each time the result is the same thing (highly doubt he even did much to fix it).

    What should we do? Do I even need to care about his claim?

  53. So my contractors have been harassing me every 3 weeks for money they want 95% now and yet there is still at least 20% left of work, imperfections and damages to our property that need to be done but in turn our contractor doesnt send workers until he is paid. He is now threatening a lien can he do this with only estimates and invoices and no actual signed contract or end date and cost

  54. I planned to build a home with my (then) boyfriend acting as the unofficial site super. He is a cement mason and has some (limited) knowledge of engineering and helped with sourcing some materials as well. In short, i was providing the money and he was going to provide sweat equity. He had zero financial investment but put in a lot of time researching materials and costs. Turned out he had no real workforce behind him and was making ill-informed and costly decisions that caused a lot of tension between us. He did some (minimal) land prep, for which he was paid in full. I ultimately ended the relationship (5 months ago now) and ended up contracting a professional builder to carry out the job. He is now saying he plans to lien the property because it was supposed to be HIS job and he is entitled to a piece of the equity.
    He and I do not have any written agreement, nor has he invested a penny. Can he delay the build with this (in my opinion) frivolous and spiteful decision?

  55. Thanks for the article! Simple question:

    Does a lien accrue interest over time? (So, if a lien was placed for $20k in 2021 and the property owner sells in 2031, will that lien still be worth $20k or will the lien have accrued interest in the decade since filing it?)

    Thanks for any insight you have!

  56. Hi there u recently did a job I sub contracted off a siding company. We completed 2/3 of job and then another team finished the rest. The company owner is refusing to pay us for our work. I have lots of proof we did the work. Can I put a lien on this home.

  57. Can a Construction Lien be placed on a property that is a Matrimonial Home,
    owned by both husband and wife-
    (protected under the Family Law Act section 21)-

    WITHOUT a spouse’s signature on the contract too?

  59. Full transparency should be mandatory. No-one should be able to place a lien on a property without the owners knowledge. How can this be enforced?

  60. We have hired a contractor to for our basement the project is about $80,000. We are providing the payments as outlined in the contract. Within the contract it does not indicate to withhold 10%. Should we consider doing this? Also there are sub-contractors that are being managed and paid by the contracting company. If we pay the company we have a contract with and in ture they do not pay the sub-contractors they have hired to complete the work; can the subcontractors put a lien on our home?
    Thank you

  61. I did a kitchen job last year and paid my supplier in cash. All payments were cleared in cash and he did not provide me any receipt for it. Now after 10 months he is asking for $8000 as balance from me and threatening me to put a lien on my customer property. I do not have any proof of payments as all the business was cash payment. What can i do?

  62. Hello, I am with a company that installs home security. The customers sign a contract with monthly payments on a 3 year term. Am I able to file a construction lien on the customers home if they are not pay the monthly fee promised, or is there another root I must take? From the information and forms I have seen , nothing really mentions a long term contract being unfulfilled .

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