How long do I have to file a construction lien in Ontario?
Under the Construction Act, a construction lien must be preserved (registered against title) within 60 days of the earliest of: the last day services or materials were supplied to the improvement, the date the contract was completed, the date a certificate of substantial performance was published, or the date the contract was abandoned or terminated. The lien must then be perfected by commencing a Superior Court action and registering a Certificate of Action within a further 30 days. These deadlines are absolute. Miss them and the lien expires permanently — regardless of how much you are owed or how strong the underlying claim for payment may be.
How much does it cost to file a construction lien in Ontario?
The cost of filing a construction lien in Ontario depends on the complexity of the file: the amount of the claim, the number of payers in the chain, whether the property is freehold or condominium, whether the project is private or public, and whether the lien is being filed close to a deadline. Most lien files break into two stages: filing and preserving the lien (the initial registration and the supporting work to make sure it is correct and timely), and perfecting and enforcing the lien (the court action that follows). We discuss fees at the outset of every file before any work is done, so you know what the engagement will cost before you commit. Contact us for a quote on your specific file.
Can I file a construction lien without a written contract?
Yes. A construction lien arises by operation of statute as soon as a person supplies services or materials to an improvement on land — no written contract is required, and no privity of contract with the owner is required. What matters is whether the work or materials were actually supplied, to which premises, on whose authority, and what amount remains unpaid. That said, the absence of a written contract usually makes the underlying claim for payment harder to prove. We assess the documentary record — quotes, emails, invoices, photographs, delivery slips, change orders — before advising on lien strategy.
What is the difference between preserving and perfecting a construction lien?
Preservation is the registration of a Claim for Lien against the title of the property within 60 days — this creates the lien as a charge on the land. Perfection is the commencement of a Superior Court action and the registration of a Certificate of Action on title within the following 30 days — this carries the lien forward into litigation. A preserved but unperfected lien expires automatically at the end of the 90-day window. Both steps are required to maintain enforceable lien rights and there is no extension available for missing either deadline.
I’m a property owner — how do I remove a construction lien from my title?
There are three primary routes for removing a construction lien from title in Ontario. Where the lien is invalid on its face — missed deadline, wrong owner, defective form, or no lienable improvement — we bring a motion to discharge it. Where the lien is technically valid but the underlying claim is disputed and you need clear title to close a sale or refinance, we bring a motion to vacate under section 44 of the Construction Act, paying security into court (typically the lien amount plus 25 per cent for costs, up to $250,000). The lien is removed from title and the money dispute continues separately. Where the lien has simply expired and was never perfected, we register the appropriate deletion document through Teraview to clear title.
What is the 10 per cent holdback under the Construction Act?
The Construction Act requires every payer — owner, contractor, subcontractor — to retain 10 per cent of the price of services or materials supplied under each contract or subcontract. The purpose of the holdback is to provide a fund out of which lien claimants can be paid if disputes arise downstream. Holdback must generally be maintained until lien rights have expired, after which it can be released. Owners who release holdback prematurely may be personally liable to unpaid subtrades and suppliers. We advise homeowners and commercial property owners on the timing and conditions for safe release of holdback at the end of a project.
What is breach of trust under the Construction Act?
All money received on account of an improvement — whether by an owner, contractor, or subcontractor — is held in statutory trust under sections 8 to 13 of the Construction Act for the benefit of the parties downstream who supplied services or materials to that project. Using trust funds for anything else — another project, overhead, personal expenses — is a breach of trust. Critically, the directors and officers of a corporation that diverts trust funds can be held personally liable, even if the corporation is insolvent or bankrupt. Breach of trust claims survive even where lien rights have already expired, making them a powerful remedy when the 60- or 90-day deadlines have been missed.
What is prompt payment and how does Construction Act adjudication work?
Ontario’s prompt payment regime imposes mandatory payment timelines once a proper invoice has been delivered. Owners must pay general contractors within 28 days, who must pay subcontractors within 7 days of receiving payment, and so on down the chain. Payment disputes can be referred to a binding adjudication conducted by an ODACC-listed adjudicator, who renders a written decision within 30 days. The determination is binding on an interim basis and enforceable in the Superior Court. Adjudication is significantly faster and less expensive than lien litigation and runs in parallel with lien rights — it is available in addition to, not as a replacement for, registering a construction lien.
Can a homeowner be personally liable for unpaid subcontractors?
Yes, in certain circumstances. If you release holdback to your general contractor before lien rights have expired and a subcontractor or supplier goes unpaid, you may be personally liable to that subcontractor for the amount that should have been retained. You can also be liable for payments made after you have received written notice of an unpaid claim. The Construction Act protects owners who follow the holdback rules carefully — but the protection is conditional on doing it correctly. Homeowners undertaking renovations or custom builds should obtain advice on holdback obligations before making final payment, not after.
What happens if I miss the 60-day or 90-day construction lien deadline?
If the 60-day preservation deadline is missed, the lien right is extinguished — it cannot be revived and cannot be registered late under any circumstances. If the lien is preserved but not perfected within the following 30 days, the preserved lien expires and is discharged from title automatically. The underlying contractual right to be paid still exists and can be pursued through an ordinary Superior Court action for breach of contract or quantum meruit — but the security of a charge on the land is gone, along with the procedural advantages of the Construction Act. Where deadlines have already been missed, we focus on the remaining remedies: breach of trust claims (which can reach directors personally and are not affected by the expiry of lien rights), prompt payment and adjudication, contract claims, and payment bond claims on public projects.