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Lien Notice
I need a lien notice to inform a property owner in Ontario about an unpaid invoice for construction work completed on their property. The notice should include the amount owed, a description of the work performed, and a deadline for payment before further legal action is considered.
What is a Lien Notice?
A Lien Notice alerts others that someone claims a legal right to property or assets in Canada. When contractors, suppliers, or workers haven't been paid for their services, they can file this notice to protect their right to get paid from the property's value.
This powerful tool gives potential buyers or lenders a heads-up about existing claims, while protecting those who provided work or materials. Under provincial construction and builders' lien laws, you typically have between 45-90 days after completing work to file this notice, depending on your province. Missing these deadlines can mean losing your right to claim payment.
When should you use a Lien Notice?
File a Lien Notice when you've provided work, materials, or services on a construction project and haven't received payment. This legal tool becomes crucial immediately after completing your work - the clock starts ticking on your right to claim payment through the property.
Timing matters immensely. In Ontario, you must file within 60 days of completing work, while other provinces have different deadlines. Use this notice before selling or transferring property rights, refinancing, or when payment disputes arise. It's especially important for subcontractors and suppliers who don't have direct contracts with property owners.
What are the different types of Lien Notice?
- Notice Of Intent To File Lien: Warns property owners of upcoming lien filing, often used as a first step to encourage payment
- Lien Notice To Owner: Directly informs property owners about unpaid work or materials, required in some provinces before filing a formal lien
- Right To Lien Notice: Establishes your legal right to file a lien, commonly used at project start
- Notice Of Lien And Demand For Payment: Combines lien notice with formal payment demand, often used before legal action
- Notice To Owner Notice To Contractor: Notifies both property owner and general contractor, useful for subcontractors
Who should typically use a Lien Notice?
- Contractors and Subcontractors: File Lien Notices to secure payment for work completed on construction projects
- Material Suppliers: Protect their right to payment for materials delivered to construction sites
- Property Owners: Receive and respond to lien notices, must address claims before selling or refinancing
- Construction Lawyers: Draft and review notices, ensure compliance with provincial deadlines
- Title Companies: Search for and document existing liens during property transactions
- Financial Institutions: Consider lien status when approving construction loans or mortgages
How do you write a Lien Notice?
- Project Details: Gather exact property address, legal description, and construction project dates
- Payment Information: Document amounts owed, work performed, and payment history
- Timeline Check: Confirm your provincial lien filing deadline from last work date
- Party Information: Collect legal names and addresses of property owner, general contractor, and other relevant parties
- Documentation: Compile contracts, invoices, and proof of work completion
- Platform Assistance: Use our smart template system to generate a legally-sound Lien Notice that meets provincial requirements
- Final Review: Double-check all dates, amounts, and party details before filing
What should be included in a Lien Notice?
- Property Description: Full legal description and municipal address of the property where work was done
- Claim Details: Precise amount claimed, nature of work performed, and dates of service
- Party Information: Legal names and addresses of claimant, property owner, and general contractor
- Work Verification: Description of materials supplied or services rendered with specific dates
- Payment Terms: Outstanding balance and payment history details
- Legal Declaration: Statement confirming the truth of all claims made
- Signature Block: Dated signature of claimant or authorized representative
- Provincial Compliance: Specific language required by your province's lien legislation
What's the difference between a Lien Notice and a Lien Waiver?
A Lien Notice differs significantly from a Lien Waiver in both purpose and timing. While both documents relate to construction payment rights, they serve opposite functions in the payment process.
- Purpose: A Lien Notice claims rights to payment by securing an interest in the property, while a Lien Waiver surrenders these rights in exchange for payment
- Timing: Lien Notices are filed before receiving payment, typically within strict provincial deadlines. Lien Waivers are signed after receiving payment
- Legal Effect: A Lien Notice creates a security interest in the property; a Lien Waiver removes this interest
- Party Control: Contractors and suppliers initiate Lien Notices, while property owners usually request Lien Waivers
- Documentation: Lien Notices require proof of work and amounts owed; Lien Waivers need payment confirmation and release language
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