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Construction Lien, please help !!

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  • Dec 3rd, 2020 5:20 pm
[OP]
Newbie
Apr 13, 2020
21 posts
1 upvote

Construction Lien, please help !!

We did basement renovation and we received a construction lien as the contractor increased the payment by 33% while never saying about this before the invoice.

I have some basic questions, really appreciate to receive help, thanks !!!

1. How do we reply to the construction lien, do we send in registered mail to the lawyer that mailed the lien to us?
2. How long do we have till we need to reply?
3. Is the reply should be "statement of defense"?
4. Where and how can we get updates related to the lien or anything related to this case. (Is the only way to wait for registered mail from his lawyer)?


Thanks !!
63 replies
Penalty Box
Jun 24, 2015
4749 posts
1407 upvotes
0 downvotes
I think you misspelled something, dont you mean Lean? never heard of Lien before. the word does not look right, looks misspelled
Hi
Member
Feb 5, 2015
355 posts
446 upvotes
Toronto
GoodFellaz wrote: I think you misspelled something, dont you mean Lean? never heard of Lien before. the word does not look right, looks misspelled
It's lien.
Member
Apr 10, 2019
366 posts
604 upvotes
Ottawa
GoodFellaz wrote: I think you misspelled something, dont you mean Lean? never heard of Lien before. the word does not look right, looks misspelled

Spelling is fine...

What Is a Lien?
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. There are many types of liens that are used to secure assets.

https://www.investopedia.com/terms/l/lien.asp
Sr. Member
Jun 26, 2019
981 posts
735 upvotes
How long ago was the work done?

Also, is it an official Lien or is just a notice that its coming?

Have you spoken with your contractor about it? Do you have a written contract that was agreed upon and a payment schedule?

Something seems off here..... unless this happened a while ago?
Deal Guru
User avatar
Mar 23, 2008
12116 posts
8445 upvotes
Edmonton
BestSell3 wrote: We did basement renovation and we received a construction lien as the contractor increased the payment by 33% while never saying about this before the invoice.

I have some basic questions, really appreciate to receive help, thanks !!!

1. How do we reply to the construction lien, do we send in registered mail to the lawyer that mailed the lien to us?
2. How long do we have till we need to reply?
3. Is the reply should be "statement of defense"?
4. Where and how can we get updates related to the lien or anything related to this case. (Is the only way to wait for registered mail from his lawyer)?


Thanks !!
I'd start with posting a location. Different jurisdictions have different rules.

C
[OP]
Newbie
Apr 13, 2020
21 posts
1 upvote
Thanks you

We located at Niagara
We received the lien 40 after the work was finished
[OP]
Newbie
Apr 13, 2020
21 posts
1 upvote
Does any one has an experience with this, so i can PM him what we received to tell us if this a construction lien?

Thanks
Sr. Member
Jun 26, 2019
981 posts
735 upvotes
BestSell3 wrote: Thanks you

We located at Niagara
We received the lien 40 after the work was finished
That seems almost too fast to put anything official in place, although the dead line is about 45 days iirc. Did you tell him you weren't paying him the extra right away?

Also, as per my above post, can you contest the lien amount by showing a signed contract and payment schedule? Or did you agree to T&M or something else in writing?
Deal Addict
Dec 20, 2018
4979 posts
4023 upvotes
BestSell3 wrote: We did basement renovation and we received a construction lien as the contractor increased the payment by 33% while never saying about this before the invoice.

I have some basic questions, really appreciate to receive help, thanks !!!

1. How do we reply to the construction lien, do we send in registered mail to the lawyer that mailed the lien to us?
2. How long do we have till we need to reply?
3. Is the reply should be "statement of defense"?
4. Where and how can we get updates related to the lien or anything related to this case. (Is the only way to wait for registered mail from his lawyer)?


Thanks !!
Depends how your contract was drafted. Were all the works an "all in" price or is there some things based on quantity ?

Did you have any change orders during project?
[OP]
Newbie
Apr 13, 2020
21 posts
1 upvote
We have written contract and we "changed things" but we never knew it is a change of the contract and he will charge us extra, if we knew, we will never agree.

For example
1. He wanted to put regular drywall in the shower (wasn't specified in contract what drywall to use) and i asked isn't green required, so he put the green one, and now he asks for extra 1,500$ (in contract we never said what drywall).
2. He should have put vinyl floor but we asks if we buy tiles is ok (he said yes, we even bought smaller one as he requested), we did and never knew it is a change and cost extra.

Thank you so much !!
Deal Guru
User avatar
Mar 23, 2008
12116 posts
8445 upvotes
Edmonton
BestSell3 wrote: We have written contract and we "changed things" but we never knew it is a change of the contract and he will charge us extra, if we knew, we will never agree.

For example
1. He wanted to put regular drywall in the shower (wasn't specified in contract what drywall to use) and i asked isn't green required, so he put the green one, and now he asks for extra 1,500$ (in contract we never said what drywall).
2. He should have put vinyl floor but we asks if we buy tiles is ok (he said yes, we even bought smaller one as he requested), we did and never knew it is a change and cost extra.

Thank you so much !!
You can start here:
https://www.ontario.ca/page/your-rights ... or-repairs

And there’s also contact information there so you can get some “official” answers. The wording of the contract, the estimates, other communications all might be important, and we can’t see any of that.

C
Sr. Member
May 21, 2015
916 posts
445 upvotes
Sarnia, ON
Something is not making sense here by your omissions..A lien is sent out when payment is not received.. So what did your original invoice state and did you pay the full amount, or did you reduce the amount to what you originally contracted for? Start from the beginning.. Did you receive a invoice, was the invoice for 33% more than agreed to by contract? Did you pay anything, nothing? Did you contact the contractor to dispute the invoice before you paid or didn't pay anything? How did you pay and when
Sr. Member
May 21, 2015
916 posts
445 upvotes
Sarnia, ON
You should also be concerned that if that lien has been filed with the court/municipality onto your house that you will encounter possible difficulties selling the house with a lien on it. Every perspective buy/realtor will do a lien search.
Deal Addict
Feb 16, 2013
1552 posts
1279 upvotes
Toronto
Title of the thread should be "I stiffed a contractor, and now they are pissed".
....
Deal Fanatic
User avatar
Oct 19, 2008
6624 posts
2203 upvotes
GTA
GoodFellaz wrote: I think you misspelled something, dont you mean Lean? never heard of Lien before. the word does not look right, looks misspelled
You got mixed up with the other type of construction lean; like the leaning tower of Pisa.

OP, read the link Cneufeld posted, from your post its not even clear if you received a letter from a lawyer threatening a lien or if one has been filed against the property. There is a lien process, not defending the action will allow the lawyer to easily get a judgement.
To be clear the contractor files a lien, then has to prove in court its justified (he is owed money)....the lien is removed in about 30 days if contractor doesn't file against you in court. That's from memory, best you research and probably get a lawyer.
Sr. Member
Sep 15, 2017
523 posts
537 upvotes
cowbunpants wrote: Title of the thread should be "I stiffed a contractor, and now they are pissed".
Title could also read " ripoff contractor strikes again". Typical stuff for many of these "renovation experts"
Deal Guru
User avatar
Oct 6, 2010
14643 posts
9047 upvotes
Toronto
OP, details are huge when you need help on this type of situation. Need everything from a to z.
DYI difficulty scale:
0-joke
10-no joke

¯\_(ツ)_/¯
Penalty Box
Jun 24, 2015
4749 posts
1407 upvotes
0 downvotes
DavidC363 wrote: It's lien.
Cool, all this time I never knew how it was spelled. I just heard them say "Lean" on Holmes on Homes
Hi
[OP]
Newbie
Apr 13, 2020
21 posts
1 upvote
Can i PM someone the documents we received so they can tell us if it was registered in court and to whom should i reply with my statement of defense?

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