Unregistered Liens Withdrawn Live On: Gay Company Limited v. 962332 Ontario Inc.

  • 24 avril 2024
  • Ivan Merrow and Giorgina Chum

Once lien rights are extinguished, they are extinguished forever. After a lien is first registered on title, does a withdrawal of the Claim for Lien instrument forever extinguish those lien rights? In Gay Company Limited v. 962332 Ontario Inc., 2023 ONSC 6023, survival of the claimant’s lien rights turned on this question.

Following a statutory interpretation of the Land Titles Act[1] and review of the procedures and practice of the Land Registrar, the Ontario Superior Court of Justice held an instrument must be certified by the Ontario Land Registrar to be considered “registered”. As a result, a withdrawal of an uncertified “registration” may be made without affecting the validity of future registrations.