Construction Liens in Ontario: How to Protect Your Right to Payment

If you are a contractor, subcontractor, or supplier who has not been paid for work on a construction project in Ontario, you may have the right to register a construction lien against the property. Ontario's Construction Act provides powerful remedies for those who improve land — but the deadlines are strict and missing them can mean losing your rights entirely.

What Is a Construction Lien?

A construction lien is a legal claim registered against a property title. It secures the right to payment for work or materials supplied to improve that property. When a lien is registered, the property cannot be sold or refinanced until the lien is resolved. This gives the unpaid party significant leverage to recover what they are owed.

Critical Deadlines

Under Ontario's Construction Act, you must preserve your lien by registering it on title within 60 days of the last day you supplied services or materials to the project. After preserving the lien, you must perfect it by commencing a court action within 90 days of the last day you could have preserved the lien. These deadlines are strictly enforced — if you miss them, your lien rights are gone.

Holdback Obligations

The Construction Act requires property owners (and general contractors for their subcontractors) to hold back 10 percent of the value of work done or materials supplied. This holdback serves as a fund to pay lien claimants if the general contractor or subcontractor does not pay. If an owner releases the holdback too early and a lien is subsequently registered, the owner may be liable to pay the lien claimant even though they already paid the general contractor.

For Homeowners: Dealing with a Construction Lien

If a construction lien has been registered against your home, it is important to understand your rights. You may have defences based on defective work, the validity of the lien, or the amounts claimed. You can also post security into court to have the lien vacated from title while the dispute is resolved. Getting legal advice promptly is essential.

How Ken Wise & Associates Can Help

We represent both contractors seeking to enforce liens and property owners defending against lien claims. If you have a construction payment dispute, contact us promptly — the deadlines under the Construction Act are unforgiving, and acting quickly is the best way to protect your rights.