Construction Lien Dilemma: Landlord Liability In Tenant-Driven Renovations

A contractor may register a construction lien on a property to obtain payment for their unpaid services or materials. While registering liens is generally straightforward, complexities arise when the property's fee simple registered owner is not the party who retained the contractor registering the lien. In short, the registered owner may not be an "owner" under the lien legislation, to give rise to a valid lien. In commercial construction, determining the validity of such a lien against a fee simple property owner's interest in lands, when the work is performed for a tenant, is a common issue.

Courts have consistently ruled that for a lien to be valid against a landlord's fee simple interest, where the contract is between the contractor and the tenant, the landlord must have requested the work and received a direct benefit from it. A landlord's active participation is not enough.