Contractor's Affidavit Of Release Of Liens Template for Canada
Generate a bespoke document
What is a Contractor's Affidavit Of Release Of Liens?
The Contractor's Affidavit of Release of Liens is a critical document in Canadian construction projects, typically required before final payment is released or at project completion. This sworn statement is used to protect property owners, lenders, and other stakeholders from potential future lien claims by providing legal confirmation that all project-related debts have been satisfied. The document must comply with provincial legislation such as Ontario's Construction Act or British Columbia's Builders Lien Act, and requires the contractor to declare under oath that all subcontractors and suppliers have been paid in full. It includes detailed project information, payment confirmations, and often requires supporting documentation such as receipts or subordinate lien releases. The affidavit must be properly executed before a notary public or commissioner of oaths to be legally valid and enforceable.
Frequently Asked Questions
Is a Contractor's Affidavit of Release of Liens legally binding in Canada?
Yes, a Contractor's Affidavit of Release of Liens is legally binding across Canada when properly executed and notarized. This sworn document creates legal obligations under provincial construction legislation such as Ontario's Construction Act and BC's Builders Lien Act. Once signed, the contractor is legally bound by their declarations regarding payment of subcontractors and suppliers.
Can I get a construction loan without a Contractor's Affidavit of Release of Liens?
Most Canadian lenders and title insurers require a completed Contractor's Affidavit of Release of Liens before finalizing construction financing or mortgage advances. Without this document, lenders cannot verify that no liens exist against the property, creating significant financial risk. The absence of this affidavit can delay or prevent loan approval and property transfers.
How long does statutory declaration requirements take for a Contractor's Affidavit of Release of Liens?
The statutory declaration process typically takes 1-2 business days once all information is gathered. You'll need to sign the affidavit before a notary public, commissioner of oaths, or lawyer authorized in your province. Preparation time varies depending on project complexity and ensuring all subcontractor and supplier payments are documented and verified.
Does a Contractor's Affidavit of Release of Liens differ from a Statutory Declaration of Lien Release in Canada?
These terms are often used interchangeably in Canadian construction law, but there can be subtle provincial differences. Both serve the same fundamental purpose of releasing lien claims through sworn statements. The specific terminology and format requirements vary by province - Ontario's Construction Act and BC's Builders Lien Act may have different naming conventions but achieve the same legal outcome.
Can I submit a Contractor's Affidavit of Release of Liens if some suppliers haven't been paid yet?
No, submitting this affidavit when payments remain outstanding constitutes false swearing and can result in criminal charges and civil liability. The document specifically declares that all parties have been paid in full. If payments are pending, you must wait until all obligations are satisfied or arrange alternative lien release mechanisms through your provincial construction legislation.
Which provinces in Canada require notarization for a Contractor's Affidavit of Release of Liens?
All Canadian provinces require proper commissioning of this sworn document, though the authorized officials vary by jurisdiction. In Ontario under the Construction Act, it must be sworn before a notary public, commissioner of oaths, or lawyer. BC's Builders Lien Act has similar requirements, and other provinces follow comparable statutory declaration procedures for construction-related affidavits.
Common mistakes contractors make when completing lien release affidavits in Canada?
The most frequent errors include failing to list all subcontractors and suppliers, not obtaining proper notarization, and submitting the document before final payments are made. Many contractors also forget to include material suppliers or don't verify that the affidavit format complies with their specific provincial legislation. Incomplete project descriptions and incorrect property legal descriptions are also common issues that can invalidate the document.
About the Contractor's Affidavit Of Release Of Liens
When you complete a construction project in Canada, you need a Contractor's Affidavit of Release of Liens to provide legal assurance that all project-related debts have been satisfied. This sworn document serves as your formal declaration that you have paid all subcontractors, suppliers, and workers in full, releasing any potential lien claims against the property. The affidavit is essential for protecting property owners and enabling the release of statutory holdback funds required under Canadian construction legislation.
When do you need this document?
You must prepare this affidavit when requesting final payment from a property owner or general contractor, particularly when statutory holdback periods are expiring. Construction lenders typically require this document before releasing final mortgage advances, and title companies need it to clear any potential lien clouds before property transfers. If you are completing substantial completion certificates or applying for occupancy permits, this affidavit may be required to demonstrate that all trade obligations have been satisfied. You also need this document when settling disputes or claims related to unpaid subcontractors or suppliers, as it provides legal proof of full payment.
Key legal considerations
Your affidavit must include comprehensive project information, detailed payment confirmations, and declarations regarding the statutory lien period in your jurisdiction. You need to provide accurate contractor and property owner information, including legal names, addresses, and relevant registration numbers. The document must specifically address all subcontractors and material suppliers involved in the project, confirming that each has been paid according to their contract terms. You should attach supporting documentation such as final invoices, payment receipts, or subordinate lien releases to substantiate your claims. Be aware that making false statements in this sworn document constitutes perjury and can result in serious legal consequences, including criminal charges and civil liability.
Legal requirements in Canada
Provincial legislation governs the specific requirements for your affidavit, with Ontario's Construction Act, British Columbia's Builders Lien Act, and Alberta's Builders' Lien Act being the primary governing statutes. You must execute the document before a notary public, commissioner of oaths, or other authorized official as required by your provincial jurisdiction. In Quebec, the Civil Code governs construction hypothecs and their release, requiring compliance with different procedural requirements. Your affidavit must address the statutory holdback period, which varies by province but typically ranges from 45 to 60 days after substantial completion. You must ensure compliance with the Personal Information Protection and Electronic Documents Act (PIPEDA) when handling personal information within the affidavit, particularly regarding subcontractor and supplier details.
GOVERNING LAW
Applicable law
This Contractor's Affidavit Of Release Of Liens is drafted to comply with Canada law. Key legislation includes:
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it