Construction Law

If you need the lien removed right away so that you can sell or refinance the property, it is possible to pay the amount of the lien, plus 25% for costs, into court to have the lien discharged from the property. You will then have to have the underlying dispute resolved before you get that money back (or have it paid out to the party who registered the lien).

If time is not of the essence, then the dispute with the party who registered the lien will still have to be resolved. This can be done through informal settlement negotiations, through arbitration or mediation, or through the courts.

If you provided a proper invoice and the owner or general contractor has provided you with a notice of non-payment, then you may be able to proceed to an “interim adjudication” to have your dispute decided, on an interim basis, relatively quickly.

Otherwise, you have 60 days from when you completed work on a project to register a lien, and a further 90 days after that to bring a claim in court so that you do not lose the lien. The question of when the “clock starts ticking” on the 60-day deadline can be a complicated one, so make sure you obtain clear advice on that question so that you do not lose out on your opportunity to lien the property.

You can release them once the period for registering a lien has expired, as long as no one has registered a lien. The period to register a lien expires 60 days following the completion (or substantial completion) of work on a project. However, an exact answer for when the “clock starts ticking” on the 60-day deadline can be complicated. Failing to hold back the funds for the correct period of time can make you liable for the amount of the holdback, so make sure to obtain professional advice before releasing the monies.

The legal “bar” is fairly low for a supplier to connect their supplies to a specific project. Even if you cannot prove where specific supplies were used, if you are aware of the project that they were likely used for, you may still be able to lien that property. Consult one of our construction law experts to discuss the specific circumstances of your situation.

The rules about where a construction lien falls in the order of priority for paying out a mortgage can be complicated. The general rule is that the lien will be ahead in line of mortgages that were registered after the lien was registered, but behind mortgages that were registered before the lien was registered. However, it is best to obtain a legal advice on your specific situation.