Has The Construction Lien Period Expired?

For commercial real estate lenders, advancing loan funds safely requires ensuring that no active construction liens can impact the property. This is crucial in mitigating financial risks associated with construction projects. The construction lien regime in Ontario is governed by the Construction Act, R.S.O. 1990, c. C.30, which provides clear guidelines on the lien period. Understanding and determining if the construction lien period has expired is essential for lenders.

Key Statutory Provisions

1. Lien Period: According to Section 31 of the Act, a lien must be preserved within 60 days after the date of the last supply of services or materials to the improvement. If the lien is not preserved within this period, it expires and can no longer be enforced.