ARTICLE · 07 DECEMBER 2011

Focus On Real Estate - November 2011

Dentons Canada LLP

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Many contractors assume that their work on leasehold improvements automatically gives them a right to lien the landlord’s interest as well as the tenant’s interest in the improved property.

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Landlord's and Tenant's Liability for Improvements under the Construction Lien Act

By Karen Groulx

Many contractors assume that their work on leasehold improvements automatically gives them a right to lien the landlord's interest as well as the tenant's interest in the improved property. In many cases, however, the landlord's interest in the leasehold premises that has been improved by the contractor's work, cannot properly be the subject of a construction lien, even where that landlord has provided a "leasehold improvement allowance" absent facts that support a finding that the landlord is the statutory "Owner" as defined under the Construction Lien Act, R.S.O. 1990 c. C.30. (the "Act").

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