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FAQs

How is a construction lien registered on title and how can it be released?

A Claim for Lien must be “preserved” by registration on title of the required form within 45 days from the date that the services are last provided or materials are supplied. The Notice does not have to be signed by the Owner or approved by the Court and as such, owners can sometimes be surprised to find lien notices registered on title, especially if they are registered by subcontractors with whom the owner has no direct contract. The lien claimant must “perfect” the lien within a further 45 days, which means that it must commence a court action, issue and serve a Certificate of Action and a Statement of Claim setting out the amount allegedly owing. If the owner retains the proper holdback of 10% of the contract cost of materials and work to be supplied over the course of the construction, the owner’s exposure to the lien claimant may be limited to the amount of the holdback only. The lien can be removed by payment into court of certified funds or posting a Letter of Credit in the disputed amount plus costs, or settlement with a discharge to be registered on title.

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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