What happens if a subcontractor puts a lien on my property?

If a subcontractor puts a lien on your Ottawa property, you could lose your home if the debt isn't resolved - but Ontario's Construction Act provides specific protections and procedures to help you fight it.

When a subcontractor files a construction lien in Ontario, they're claiming your property as security for unpaid work or materials. This creates a legal cloud on your title, meaning you can't sell or refinance until it's resolved. However, the process isn't immediate - you have rights and time to respond.

How Construction Liens Work in Ottawa

Under Ontario's Construction Act, subcontractors have 60 days from their last day of work to file a lien. Once filed with the Land Registry Office, the lien is valid for 90 days unless they start a court action to enforce it. The lien amount can include their labor, materials, and even interest.

The critical protection for Ottawa homeowners is the holdback requirement. Your general contractor should have held back 10% of each progress payment for 60 days after substantial completion. This holdback money is specifically meant to cover potential lien claims. If your contractor didn't maintain proper holdbacks, they become personally liable for any liens.

Your Immediate Steps in Ottawa

First, don't panic - contact a construction lawyer immediately. Ottawa has several firms specializing in construction liens who can review the claim's validity. The lien might be invalid due to timing, improper filing, or lack of proper preliminary notices.

Verify the subcontractor's claim by checking your general contractor's payment records. Did your contractor actually pay them? Sometimes subcontractors file liens even when they were paid, hoping homeowners will pay twice rather than fight it.

Contact your general contractor immediately. They're responsible for paying their subcontractors and should resolve this. If they refuse or can't be reached, this is a major red flag about their business practices.

Fighting the Lien

You can apply to court to have the lien removed if it's invalid. Common grounds include improper filing procedures, missed deadlines, or work that doesn't qualify for lien rights. In Ottawa, these applications are filed at the Superior Court of Justice at 161 Elgin Street.

If the lien is valid but the amount is disputed, you can pay the disputed amount into court. This removes the lien from your property while the matter is resolved, allowing you to sell or refinance if needed.

Prevention for Future Projects

Always verify your contractor maintains WSIB coverage and proper insurance. Check their status at wsib.ca/clearances before starting work. A contractor without WSIB coverage creates higher lien risks since injured workers might claim against your property.

Require your contractor to provide statutory declarations from all subcontractors confirming they've been paid before making final payment. Never pay the full contract amount - always maintain that 10% holdback for 60 days after completion.

Get everything in writing, including change orders and payment schedules. Keep detailed records of all payments made to your general contractor.

Ottawa Resources

Contact the Law Society of Ontario's referral service at 1-855-947-5255 for construction lawyers in Ottawa. For general consumer protection advice, reach Ontario's consumer protection office at 1-800-889-9768.

The key is acting quickly - construction liens have strict timelines, and waiting can limit your options for fighting invalid claims.