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ARTICLE · 28 SEPTEMBER 2018

5 Things Commercial Landlords Should Know About The New Construction Act

Gowling WLG
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On July 1, 2018, the first round of major amendments to the Construction Lien Act (now called the Construction Act) came into effect. With the second round of amendments scheduled for October 1, 2019,...

CanadaReal Estate and Construction
Laurie Sanderson
Laurie Sanderson
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On July 1, 2018, the first round of major amendments to the Construction Lien Act (now called the Construction Act) came into effect. With the second round of amendments scheduled for October 1, 2019, there promises to be a significant shift in the way that the Construction Act affects commercial landlords in Ontario.

Here are five important takeaways for commercial landlords.

1. Automatic 10% Lien Right against Landlords Paying Allowances, etc.

While the reference to "liens" has been removed from the title of the Construction Act, changes to the Act will actually extend landlords' lien exposure.

First, changes to the Construction Act remove the ability of landlords to avoid liens where payment for an improvement to a leasehold property is accounted for under the lease (or under any connected agreement to which the landlord is a party). Unlike the Construction Lien Act (the "Old Act"), the amended Construction Act (the "New Act") does not permit landlords to

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