RSLA and PPSA Liens
If you repair, maintain, or store someone else’s property in Ontario—such as vehicles, boats, heavy equipment, or other goods—you have valuable rights under Ontario’s Repair and Storage Liens Act (RSLA). An RSLA lien allows you to secure payment for your services by claiming a legal interest in the property until your invoice is paid.
At Haider Khan Legal P.C, we help mechanics, repair shops, storage facilities, and other service providers enforce their RSLA lien rights effectively, quickly, and in compliance with the law.
In addition, the Personal Property Security Act (PPSA) governs security interests in personal property in Ontario. It enables individuals and businesses to secure debts or obligations by registering an interest in a debtor’s personal property. This legislation ensures that secured parties—such as lenders, suppliers, and lessors—can protect their legal interests in the event of default, insolvency, or dispute.
Whether you're a creditor seeking to register a financing statement or a debtor navigating a claim against personal assets, understanding your rights and obligations under the PPSA is critical. We provide strategic guidance and legal protection throughout the lifecycle of secured transactions.
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What is an RSLA Lien?
An RSLA lien is a statutory right that protects service providers who have repaired or stored goods. It gives you:
Possessory lien – the right to keep possession of the property until payment is made.
Non-possessory lien – if you have already released the property, you may still register a lien with the Personal Property Security Registration (PPSA) system to preserve your claim.
When Can You Claim an RSLA Lien?
You may claim an RSLA lien if you:
Performed repair or maintenance work on goods at the owner’s request (oral or written).
Provided storage services for goods.
Have not been fully paid for your work or storage fees.
Enforcing an RSLA Lien
We assist clients in:
Calculating the lien amount – including labour, parts, and authorized costs.
Retaining possession lawfully – ensuring you comply with statutory obligations.
Providing proper notice – serving the owner, secured creditors, and other required parties within strict deadlines.
Registering the lien – through the PPSA if the property is no longer in your possession.
Selling or Retaining the property – through the RSLA’s sale or retention process to recover your payment.
Why Timing Matters
RSLA lien rights have strict timelines for notice, registration, and enforcement. Missing these deadlines can cause you to lose your claim entirely. We ensure every step is taken promptly so your rights are preserved.
Disputed Under the RSLA
Disputes under the RSLA typically arise when the lienholder and the owner of the goods disagree on the validity or amount of the lien. Resolution mechanisms may include:
Negotiation: Parties may attempt to resolve disputes informally.
Court Applications: If informal resolution fails, parties may apply to the Ontario Superior Court of Justice for adjudication. The court can determine the validity of the lien, order payment, or direct the sale of the goods.
Disputes often centre on whether the lienholder has complied with the RSLA’s requirements, such as providing proper notice or maintaining possession of the goods. Owners may also challenge the amount claimed, arguing it is excessive or includes unauthorized charges. Lastly, issues may arise regarding the timing, method, or proceeds of the sale of goods subject to a lien.
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At Haider Khan Legal P.C., we provide a comprehensive suite of services tailored to your PPSA-related needs, including:
1. Registration and Perfection of Security Interests
Drafting and filing of Financing Statements
Advising on perfection by possession or control
Ensuring priority in the PPSA Registry
2. Enforcement of Security Interests
Assisting with seizure and sale of collateral
Enforcing rights upon default or insolvency
Negotiating settlements and repayment plans
3. Priority Disputes & Legal Opinions
Resolving competing claims between secured creditors
Advising on purchase-money security interests (PMSIs)
Delivering legal opinions for financing transactions
4. PPSA Litigation & Disputes
Defending or initiating court actions involving secured interests
Representing clients in wrongful seizure, fraud, or breach claims
Advising on debt recovery strategies tied to PPSA enforcement
Common Scenarios Where PPSA Law Applies
Clients frequently engage us in the following situations:
A lender financing equipment purchases wants to secure their interest to prevent loss if the borrower defaults.
A non-institutional/personal lender wants to ensure there is collateral on their promissory note.
A supplier selling goods on credit needs to register a PMSI to maintain priority over other creditors.
An investor or business partner wants to protect capital advanced to a corporation by registering a general security agreement (GSA).
A creditor seeks to enforce a security interest by seizing a debtor’s assets, such as inventory or vehicles.
A debtor discovers a lien filed without justification and needs legal action to dispute or discharge it.
Why Choose Haider Khan Legal?
Whether you are a storer, repairer, or owner, Haider Khan Legal P.C possesses extensive knowledge on RSLA matters and can help you through the complexities of the RSLA. We regularly assist both businesses and individual owners with respect to matters under the RSLA.
In addition, we blend practical business sense with precise legal knowledge to deliver reliable outcomes in PPSA matters. Whether you're registering a lien, asserting your rights, or defending against a wrongful claim, we work efficiently to protect your interests.
Contact us today to discuss your PPSA needs or book a consultation. Our team is available for urgent enforcement actions, lien disputes, and creditor remedies across Ontario.
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