Received a construction lien? Here’s what you can do

Received a construction lien?  Here's what you can do

Have you been hit with a construction lien?  Before you panic, we’re here to help you understand what a construction lien is, and what you can do to resolve the issue.

Construction liens can be a frustrating and confusing aspect of the construction industry. As a homeowner, learning of a construction lien against your property can be extremely stressful and frustrating.

What are the implications of a construction lien?

If you have a lien on your property, it can be a significant problem. A lien can prevent you from selling or refinancing your property, which can be a major inconvenience. It can also damage your credit rating, and may even result in your property being seized if the issue is not resolved.

What are the basics of a construction lien?

Understanding the basics of construction liens and how to resolve them can help protect your interests and avoid costly legal battles.

A construction lien is a legal claim that can be filed against a property by a contractor, subcontractor, or supplier who has not been paid for their work on the property. 

In Ontario, the Construction Lien Act allows for the filing of a lien by any person who has provided labor, materials, or services to improve a property. This includes not only contractors and subcontractors, but also architects, engineers, and other professionals involved in the construction project.  In Alberta and British Columbia, the rules and procedures for construction liens are similar to those in Ontario. In all provinces, the legislation governing construction liens is designed to protect the rights of contractors, subcontractors, and suppliers who have not been paid for their work on a property.

What is the timeframe to resolve a construction lien?

If a construction lien is not resolved within the prescribed time frame, the lien claimant can take legal action to enforce the lien and seek payment. In Ontario, the time frame for resolving a construction lien is typically 45 days from the date the lien is filed. This means that the property owner and the lien claimant must either come to an agreement to pay the outstanding amount or take the issue to court within this time frame.

There are several ways to resolve a construction lien, including negotiating a payment plan or settlement, challenging the validity of the lien in court, or paying the amount claimed in the lien. Each situation is unique, and the best course of action will depend on the specific circumstances of the case.

It’s important to note that construction liens can be complex and legally challenging. If you are involved in a situation where a construction lien has been filed, it’s in your best interests to seek the advice of a lawyer or other legal professional who can help you understand your rights and options.

The bottom line

In conclusion, construction liens are a common but often misunderstood aspect of the construction industry. Understanding the basics of construction liens and how to resolve them can help protect your interests and avoid costly legal battles. If you are involved in a situation where a construction lien has been filed, it’s important to seek legal advice to ensure that your rights are protected and the issue is resolved in a timely and satisfactory manner.

Important note: This article is not Legal Advice. No one should act, or refrain from acting, based solely upon the materials provided on this website, any hypertext links or other general information without first seeking appropriate legal or other professional advice.

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