As a contractor in Toronto, few situations are more frustrating than completing work on a projectโwhether itโs residential, commercial, or industrialโonly to find that payment is delayed or withheld. Fortunately, Ontarioโs Construction Act gives contractors, subcontractors, and suppliers a powerful legal tool: the right to place a construction lien on the property where the work was performed.
A lien protects your right to be paid and can create real leverage in resolving a dispute. If youโre a contractor in the Greater Toronto Area (GTA) dealing with unpaid invoices, hereโs what you need to know.
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What is a Construction Lien?
A construction lien is a legal claim registered on the title of the property where you supplied labour or materials. It essentially freezes the propertyโs ability to be sold or refinanced until the lien is resolved. This puts significant pressure on the property owner (or general contractor) to address the outstanding payment.
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Who Can Register a Lien in Toronto?
Under the Ontario Construction Act, you may be entitled to file a lien if you are:
โข A general contractor who completed work but wasnโt paid in full.
โข A subcontractor or supplier who contributed materials or services.
โข A tradesperson or specialty contractor (plumber, electrician, roofer, etc.) working on a Toronto property.
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Deadlines to Remember
Strict timelines apply when registering a lien in Ontario. Missing them can mean losing your rights altogether. Key deadlines include:
โข Lien Preservation Period: You must register your lien within 60 days of the last day you supplied labour or materials.
โข Lien Perfection Period: After registering, you have 90 days to โperfectโ the lien by starting a court action.
Failing to meet these deadlines could void your lien rights, so timing is critical.
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Why File a Lien in Toronto?
A lien can:
โข Secure your unpaid amount directly against the property.
โข Put immediate pressure on owners or developers who want to sell, refinance, or continue construction.
โข Increase your leverage in settlement negotiations.
For many Toronto contractors, simply registering the lien often prompts payment discussions.
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Practical Steps for Contractors Before Filing
1. Review your contract โ confirm payment terms and whether there are any dispute resolution clauses.
2. Document everything โ keep detailed invoices, emails, and records of work completed.
3. Send a demand letter โ sometimes a formal written request from a lawyer prompts faster payment.
4. Consult a Toronto lien lawyer โ given the technical filing requirements, professional guidance can save costly mistakes.
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The Bottom Line
If youโre a Toronto contractor who hasnโt been paid, donโt wait until itโs too late. Construction liens are one of the most effective legal remedies available under Ontario law, but strict deadlines apply. Acting quickly can mean the difference between recovering your money or losing your claim.
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Need Help Filing a Lien in Toronto?
At Capulli Law LLP, we regularly assist contractors, subcontractors, and trades in Toronto and across the GTA with construction lien claims. If youโre owed money and thinking about filing a lien, contact us today for clear advice and fast action.
๐ 647-504-6878
๐ capullilaw.com