Retirment Asset Allocation RRSP Graphing Calculator RRSP Tax Savings Calculator After-Tax Returns Calc. After nearly a decade in the dumpster, real estate is on a roll again. According to Canada Mortgage and Housing Corporation, spending on home renovations outpaced the new home market every year during the 1990s. Most people know a building permit is needed before construction begins. Or that a minor variance must be issued by the local Committee of Adjustment, if the proposed work will encroach into yard setbacks.
Construction liens are another story.
If you're planning to upgrade a kitchen or bathroom, finish a basement or build an addition, make sure you understand the law on construction liens. Under Ontario's Construction Lien Act, payments to a general contractor must be based on the value of the work done, not time spent on the job. As construction progresses, more money can be advanced following the same formula. While I may pay the general contractor on schedule, it may not. Too few renovation contracts mention the statutory holdback.