The Certificate of Action and its Role in Liens

Hi Everyone, it's Kristy from Clearly Legal.

Let's talk today about the Certificate of Action.

In Ontario, a construction lien is a legal claim for payment for goods or services that have been supplied to improve a property. The Construction Lien is your protection of your right to be paid. The Certificate of Action is key.

What Is a Certificate of Action?

The Certificate of Action is a formal document used in Construction Lien Actions. It confirms that a lien claimant has started legal proceedings to enforce a lien. In Ontario, this document is known as Form 10, the Certificate of Lien form.

After a party has preserved a lien claim by registering the lien on title with the Land Registry Office, the party issues a Statement of Claim in the Ontario superior court of justice. This is typically followed by the registration of the Certificate of Action.

The Certificate of Action is literally a pleading called the Certificate of Action wherein the Plaintiff Certifies that an Action has been commenced in the Ontario Superior Court of Justice under the Construction Act, R.S.O. 1990, c. C. 30. It attaches a Schedule A. The Schedule A is the Construction Lien instrument that was registered on title with the Land Registry Office.

The Certificate of Action is often filed with the claim, as a required part of the issuing process, and is registered on the title with the lien.

Why Is Preserving a Lien Important?

Preserving a lien is important because it formally registers a legal claim against property title to secure payment for work.

The Certificate of Action plays a key role in this preservation process by showing that you have started legal action.

How the Certificate of Action Fits Into the Lien Process

The process of perfecting a lien involves several steps. Here’s how the Certificate of Action fits in:

1. Preserving a Lien

   You begin by registering your lien on the property title within the required timeframe. This step protects your claim but does not enforce it.

   
   

2. Issuing a Statement of Claim

   Next, you issue a Statement of Claim in the Ontario Superior Court of Justice. This document outlines your case and formally starts the legal action to enforce the lien.

   
   

3. Registering the Certificate of Action

   After issuing the Statement of Claim (or at the same time as issuing), you register the Certificate of Action. This confirms that you have commenced legal proceedings and strengthens your lien claim.

   
   

Together, these steps are known as perfecting a lien.

How I Can Help You

I have clerked the issuing of lien claims; following my last blog, it is a service I have taken on as Clearly Legal. If a freelancer proficient in taking on new projects and taking the lead sounds like the right fit, contact me at kristy@clearlylegal.ca  and we'll chat.