Specs Quiz #9 Flashcards Preview

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Flashcards in Specs Quiz #9 Deck (20):
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1. What is a Lien?

A legal way of attaching a claim onto someone’s property.

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2. What is the basic premise of a Lien?

The basic premise is that certain specified persons who have performed work or supplied services or materials, for the owner of the land, obtain some measure of security for payment by establishing their right to register a lien against the Owner’s land.

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3. Is the Construction Lien Act applied across all provinces and territories?

No, it's only in Ontario. Other provinces have their own version.

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4. Is a Lien the best avenue for a General Contractor to get their money from an owner that did not pay them?

It’s better to sue them through the contract they signed with the owner

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5. Can owner’s lien a General Contractors property for not paying their sub-contractors?

No. Liens can only be placed on properties that labour or materials have been supplied to

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6. How long is the basic hold back period in regards to Liens?

45 days after the publication of certificate of substantial performance in a daily commercial newspaper

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7. What event starts the hold back period? (Name of the 3)

45 Days after publication of Certificate of Substantial Performance in a daily commercial newspaper.
The building is being used for its intended purpose.
It is deemed substantially complete by the consultant.

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8. What do you have to do to preserve a Lien?

A lien is preserved when it is registered in the correct land registry office, together with verification, within the 45-day lien expiry period.

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9. What do you have to do to perfect a Lien?

A lien is perfected by starting a court action in the correct Ontario Court office, and registering a certificate of action.

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10. How long do you have to perfect a Lien?

It must be perfected within the 45-day period following the last date it could have been preserved.

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11. If you worked by the hour for a sub-contractor to the general contractor on a project and were not paid, could you file a Lien on the property?

Yes.

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12. If you required information from the owner, or general contractor in order to file your Lien, within what time period must you ask for the information?

Within 21 days of publication of the Certificate of Substantial Performance

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13. What 2 groups cannot file a Lien on a property?

Legal services and construction management services

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14. What will happen in your Lien is not perfected within the allotted time?

It will expire and cease to exist

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15. What is substantial performance?

It is when the amount of construction value left to be performed on a project reaches a low threshold, which is determined by a calculation

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16. How much must be held back from each monthly progress draw according to the Lien Act?

10%

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17. How do owner’s generally react (money wise) to a Lien being placed on their property?

All payments are stopped

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18. What options do general contractors have if a sub-contractor places a Lien on the project?

They can pay the sub-contractor or purchase a Lien Bond from a Surety

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19. What is conducted before a payout of the Lien holdback can be released after the holdback period expires?

A title search is conducted by the owner

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20. The _________ _______ starts on the date of substantial performance.

warranty period