ARTICLE
21 August 2012

When Can You Register A Construction Lien Against A Landlord's Interest In Property

LL
Lerners LLP

Contributor

Lerners LLP is one of Southwestern Ontario’s largest law firms with offices in London, Toronto, Waterloo Region, and Strathroy. Ours is a history of over 90 years of successful client service and representation. Today we are more than 140 exceptionally skilled lawyers with abundant experience in litigation and dispute resolution(including class actions, appeals, and arbitration/mediation,) corporate/commercial law, health law, insurance law, real estate, employment law, personal injury and family law.
The question often arises whether there is right to a register a construction lien against a landlord/owner’s interest in property with respect to a contract with a tenant to provide improvements to its leased premises.
Canada Real Estate and Construction
To print this article, all you need is to be registered or login on Mondaq.com.

The question often arises whether there is right to a register a construction lien against a landlord/owner's interest in property with respect to a contract with a tenant to provide improvements to its leased premises. In these situations, the construction lien is usually only against the tenant's leasehold interest in the property. The construction lien can be enforced by selling the lease to satisfy the lien.

In order for a construction lien to also attach to the ownership interest in the property (i.e. the landlord/owner's interest in the property), the contractor must have provided the landlord/owner with written notice of the improvement to be made. In order to avoid liability and a successful lien claim against the ownership of the property, the landlord/owner has 15 days after receiving this notice from the contractor to give the contractor written notice that the landlord/owner assumes no responsibility for the improvement to be made to the property. If the landlord/owner provides the written response that it is assuming no responsibility for the improvement, the construction lien will only attach to the tenant's leasehold interest in the property.

The only other situation in which a landlord/owner may be found liable and a lien can be registered against the ownership of the land is if the owner specifically requested that the lien claimant do the work that is the subject of the construction lien.

lerners.ca/articles:commerciallitigation

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More