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ARTICLE · 16 AUGUST 2018

Lien On Me - The Problems With Construction Liens Being Registered On The Common Elements

Condominium corporations routinely hire contractors to perform work on the common elements of their respective buildings.

CanadaReal Estate and Construction

Condominium corporations routinely hire contractors to perform work on the common elements of their respective buildings. Most of the time, the contractors are paid for their work, and owners are not impacted in any way. However, what happens if the contractors are not paid, and a dispute arises between the parties regarding the work that was performed? I would safely assume that most condominium owners in Ontario are unaware of the fact that a contractor has the legal right under the Construction Lien Act to register a lien that will show up on title to every unit in the building.

In other words, if a contractor has a $15,000 dispute with a condominium corporation that has 100 units, and the contractor decides to register a construction lien, the lien will be registered against title to all 100 units. If any of the 100 unit owners want to sell their unit(s), they will need to take steps to the have the lien vacated or discharged before closing. This can be a

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