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After a condominium is registered, it is a complicated and
costly process to register a construction lien for work done on the
condominium project. However, the Construction Lien Act now
requires that developers and builders post a Notice of Intention to
Register a Condominium in a construction trade magazine prior to
taking the steps to register the condominium by sending the
description to the municipality where the property is located. This
Notice must be published between 5 and 15 days (not including
Sundays and holidays) before the description is sent to the
municipality. The published Notice gives lien claimants an
opportunity to register a construction lien against the property
prior to title of the individual units being registered.
It is much less expensive to register a construction lien prior
to registration because it is a single property owned only by the
developer/builder. After registration of the condominium, the
common elements are owned collectively by all of the condominium
unit owners and as such, a construction lien must be registered
against every condominium unit for work pertaining to the common
elements.
You can search to see if a Notice has been published on the Daily Commercial News
website and Construction Record. Under the heading
"CSPs", you can search to determine if a Notice of
Intention to Register a Condominium has been published.
If an owner (builder/developer) fails to publish the required
Notice, the owner is liable to any person entitled to a
construction lien who has suffered damages as a result. If you did
not file before the registration of the condominium, you will still
want to look to see whether there were any Notices published in
case the builder/developer forgot to file a Notice as this would
mean you would be able to look to the builder/developer to cover
any additional damages caused by the lack of Notice.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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