What We Serve

Construction Liens

A construction lien is a vital legal tool for anyone involved in the improvement of property through the provision of services or materials. Essentially, it's a charge or security registered on the title of a property, highlighting the financial interest of contractors or suppliers in the project. Recent amendments, effective July 1, 2018, have introduced significant changes to the rules and regulations governing construction liens, hold-backs, and related processes in Ontario.

Key Amendments to the Construction Lien Act

Extended Deadlines: Contractors and subcontractors now have 60 days to register (preserve) a lien and 90 days to initiate legal action (perfect) the lien.
Small Claims Court Jurisdiction: It's now possible to preserve and perfect a construction lien within the jurisdiction of the Small Claims Court.
Bookkeeping Rules: Specific bookkeeping requirements have been established to protect subcontractors in case of bankruptcy.
Hold-back Payment: Once the timeline to file liens has passed, project owners and other payers are required to pay hold-backs to contractors and subcontractors.
Prompt Payment System: Ensures timely payments to contractors, subcontractors, and workers.
Mandatory Timelines for Invoicing and Payments: Owners must pay general contractors within 28 days; subsequently, general contractors are required to pay subcontractors within seven days of receiving payment.
Interest on Late Payments: Contractors and subcontractors now have the right to charge mandatory interest on late payments.

Jurisdiction for Construction Liens

Initiating proceedings in small claims court might not always be the optimal initial step for resolving your issue. As your dedicated paralegal specializing in construction liens, my approach includes engaging in negotiations with the opposing side to circumvent legal proceedings, thereby conserving both your time and resources. Be mindful of the specific time frame permitted for initiating legal action in small claims court; it's imperative to reach out to us without delay to ascertain your case's limitation period and avoid forfeiting your legal rights. For disputes surpassing the $35,000.00 mark, if you're deliberating between filing in small claims court or escalating to the Superior Court of Justice, we're here to provide clarity and assist in budgeting your potential legal costs. It's important to note, navigating the Superior Court of Justice entails higher legal fees and necessitates engaging a lawyer, which could significantly elevate your expenses. In this case, we have a network of attorneys who we trust and are ready to take on your case.

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Construction Liens