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ARTICLE · 09 SEPTEMBER 2019

Bulletin: Construction Act – When Is A Landlord An "Owner?"

the leasing world, such as the new holdback on allowances and the elimination of landlords' s.19(2) rights.

CanadaReal Estate and Construction

If you haven’t already heard, Ontario is in the middle of a huge overhaul of its principal construction statute, now known as the Construction Act (“Act”).

Much has been written about the new requirements affecting landlords and the leasing world, such as the new holdback on allowances and the elimination of landlords’ s.19(2) rights.

It is important not to lose sight of unchanged provisions that can impact landlords.

One such unchanged provision is the definition of “owner”. Can a landlord be an “owner” under the Act?

Section 19(5) of the Act now confirms what we always knew: a landlord may be an “owner” if it meets the definition under the Act. This opens up the landlord’s leasehold and freehold interests to a construction lien for improvements made by the tenant.

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