A lien on a house can help recover money owed in Ontario.
Putting a lien on a house in Ontario is a way to stake a legal claim when a dispute involving payment arises. Members of the general public and contractors or suppliers of work have protections under the Construction Lien Act and other regulations. It can be thought of as a "hold" on the house so that it acts as a form of collateral against funds or services that are owed to the person who files the claim. Any property that carries a lien can be forced into sale by the lender if, for example, the loan is in default.
Instructions
1. Do a property title or lien search on the house on a website such as www.ppsa.ca. Find out if there are any other claims on the property and the nature of these claims. This information might influence the strategy or amount of your claim.
2. Make sure the owner of the house is the individual that you want to issue the claim against. The search will provide you with the necessary information to include in your claim.
3. Use Small Claims Court of Ontario to file your lien claim if the amount is $25,000 or less. If the claim is greater than $25,000, consult a lawyer or legal aid.
4. Pay any necessary fees required with the filing online with a major credit card. The cost is $8 per year or $500 for a perpetual period. Websites might charge an additional fee for processing.
5. Create or complete the claims forms. File them with the court either through a website, by mail or in person. You can file this at a local office or by using a website such as www.easycourtpro.ca.
6. Make sure to complete all details of the form, including owner's full name, date of birth and current address. The courts are very particular about information on legal documents. Take the time to provide all relevant information and rationale about why you are filing the lien.
7. Serve the forms to the owner of the house, who is the defendant, by registered mail. This creates the need for the defendant to file a defense in a reasonable time frame, or you can apply to the court for judgment.
8. Wait for the defense to determine your next course of action. If the dispute does not seem to be heading down a path of resolution, seek legal advice from a lawyer who can assist with enforcing a judgment.
Tags: lien house, Make sure, owner house, website such, your claim
