How does the Construction Lien Act affect my construction project, and how is it handled during construction?
Any person or company that supplies your project with materials or labour has the right to place a lien against the title of your home as a method of recovery in the event of non-payment. The Construction Lien Act requires that an amount be held in trust from which a lien may be paid. The lender will instruct the solicitor to hold back an amount (usually 10% of each draw payment) until 45 days after substantial completion of the home. You should consult with your lawyer and builder regarding the impact of the Construction Lien Act on your project.