What is a Builder’s Lien?

A builders’ lien is a special statutory right that allows contractors, subcontractors, suppliers, and other parties entitled to payment to make a claim for unpaid services or materials respecting land they helped improve. Builders’ liens are an effective form of recourse if these parties are not paid, as they exert pressure on the owners of the liened lands to ensure valid accounts are honoured and repaid within a reasonable period of time. Registering a lien against a property immediately secures a legal interest in the property and prevents the owner from selling or mortgaging the property until the lien is cleared from the title.

What is Required to Register Builder’s Liens?

A lien registered at the Land Titles Office must include the following:

  • The name and residence of the lienholder, the owner, and the person for whom the work or materials were being complete;
  • The date when the work was completed or the last materials were furnished, or a statement that the work has not yet been completed or the materials have not yet been furnished;
  • A description of the work or the materials;
  • The total amount claimed;
  • A proper description of the land and estate or interest in the land to be charged; and
  • An address for service of the lienholder.

Which Lands Are Subjected to a Lien

To effectively protect their rights, clients should know which types of land may be subject to a construction lien. A lien can only arise when there’s a qualifying connection to the property owner. This includes any individual who holds a legal interest in the land and who has—explicitly or implicitly—requested or approved the work or supply of materials. A lien may be valid if the work or materials were:

  • Provided on the owner’s credit,
  • Supplied for the owner’s benefit,
  • Carried out with the owner’s knowledge and consent, or
  • Performed on behalf of the owner directly.

It also extends to any successors or assignees of the owner whose interests arise after the construction project has begun.

How to Register a Lien

The lien registration period starts the first day that services are provided or materials are supplied and continues for the entire length of the project until there is a termination trigger. Once there has been a termination trigger, a lien claimant must register a lien at the Land Titles Office within 60 days (following the 2022 Amendments, or 45 days prior to the Amendments) or 90 days, depending on the nature of the work.

How to Enforce a Lien

While a lien is an important form of security, it does not guarantee payment. A lienholder must commence an action to realize on the lien by filing a statement of claim and registering a certificate of lis pendens at the Land Titles Office within 180 days of registering the lien. A court will either validate or discharge the lien, determine the size of the lien fund, and order the appropriate disbursement of the lien fund to each validated lienholder.

How to Remove a Builders’ Lien

There is a variety of ways to remove a builders’ lien from the title of a property, and our lawyers can assist you with them all. Most commonly, a lien will be discharged after tendering complete payment to the person or company who performed work or supplied materials towards the improvement of the property. It may also be removed following a court order upon payment of the lien fund into court. A builders’ lien will be declared invalid after 180 days from the date of filing the lien. To learn more about how to remove a builders’ lien, contact our legal professional today.

How Our Builders Liens Lawyer Edmonton Can Help

Our builders’ lien lawyers have decades of experience in assisting clients with builders’ liens and related issues. We help contractors, subcontractors, suppliers, and other parties entitled to payment register the builders’ lien or draft a claim to keep the lien on the title. We also assist property owners to remove the lien from their property and ensure it is properly discharged from the title. Our lawyers stay up to date on all new legislation, including the Prompt Payment and Construction Lien Act. We make sure our clients are well-equipped to make informed decisions in the dynamic construction industry. We also ensure our client’s legal rights are protected. Call Forum Law today to find out how one of our experienced builders’ lien lawyers can assist you with a builders’ lien or an associated dispute.