Builders’ Lien Act
The Builders’ Lien Act came into force on September 1, 2025 and replaces the Mechanic’s Lien Act. While both Acts are intended to protect contractors, subcontractors, workers, and suppliers, the Builders’ Lien Act introduces a more modern framework, aligning more closely to practices in other Canadian jurisdictions. It includes clearer procedures, timelines, and enforcement mechanisms. These legislative changes also bring new rules, forms, and processes.
| Key Changes: | |
|---|---|
| Holdbacks | The holdback requirement is 10% of the payment for services and materials until any liens against the holdback have expired, been resolved, discharged, or otherwise addressed in accordance with the Act. |
| Substantial Performance | A new prescribed formula is used to determine whether the contract is substantially complete. This determination may serve as a triggering event that starts the timeline for filing a builders’ lien. |
| Preserving the Claim | A builders’ lien must be filed within 60 days of one of the triggering events under s.36 of the Act. The Land Titles Office will no longer evaluate the timeliness of claims. It will be for the Court to decide if the 60-day filing requirement has been met. |
| Perfecting the Claim (If necessary) | The 90-day period for filing the certificate of pending litigation (lis pendens) does not begin until the 60-day lien period has expired, and a lien has been preserved. |
| Form 16 Notice of Postponement of Lien Form | A new form is introduced to defer the priority of a preserved or perfected lien in favour of another party’s interest in the property. |
Which legal system applies? Builders’ Lien Act or Mechanics Lien Act?
| Forms: | |
|---|---|
| Claim of Lien Form | Starting September 1, 2025, this form will no longer be accepted for registration, unless the contract was signed before the Builders’ Lien Act comes into effect on that date. In those instances, the Mechanics Lien Act will still apply. |
| Builders’ Lien Form | As of September 1, 2025, this form will be accepted for registration if the contract was signed on or after the Builders’ Lien Act comes into effect. If the contract was signed before this date, the Claim of Lien Form will continue to apply. |
| Builders’ Lien Intructions | Guidance and instructions on how to file a Builders’ Lien. |
| Certificate of Pending Litigation (Lis Pendens) | This is Form 11 under Builders’ Lien Act in the Regulations. |
| Builders’ Lien Act | Effective September 1, 2025. |
| Builders’ Lien Act Regulations | Effective September 1, 2025. |
Learn about the key differences between the Builders’ Lien Act and the Mechanics Lien Act.
It is strongly recommended to retain a lawyer to file a builders’ lien and manage any related proceedings. The Builders’ Lien Act imposes strict timelines and missing these deadlines could render the lien invalid and prevent its registration against the property. These processes are complex, and if not completed correctly, may result in the lien being discharged or dismissed by the Court.