Nova Scotia Builders' Lien Act: How Liens Work on a Home Project

If you are renovating or building, or you are a contractor waiting on payment, someone will eventually mention a lien. People also call it a mechanic's lien. How a lien could affect a sale, a refinancing or a payment depends on the Act and your facts, so it is worth confirming with a lawyer.

This article gives a plain overview of how liens under the Builders' Lien Act generally work on a home project in Nova Scotia. The exact time limits and who qualifies depend on the Act and your facts, so use this as a map and confirm the details with a lawyer.

This article covers the law of Nova Scotia.

What a builders' lien is in plain words

A builders' lien is a term you will hear on construction and renovation projects. What it allows, who can use it and against whom is set by the Act and depends on the facts, so a lawyer can confirm how it applies to your project.

For a homeowner, how a claim could affect your property, including when you believe you have paid the person you hired, depends on the Act and your facts, so it is worth confirming with a lawyer. For a contractor, it is a tool to protect payment. Both sides benefit from knowing the process early.

Who is usually involved

A home project often has several layers. Which of these can claim, and for what kind of work or materials, is set by the Act and depends on the facts.

• The owner, who hires and pays the main contractor.
• The general contractor, who may hire others.
• Subcontractors, who do part of the work.
• Suppliers, who provide materials or equipment.
• Lenders, such as a mortgage lender, who may have their own interest in the property.

If you are unsure where you fit, ask before the project is well under way, not after a payment dispute starts.

Why deadlines and records matter

Deadlines matter on a home project, but the specific time limits and what happens if one is missed depend on the Act and your facts, so it is worth confirming them with a lawyer. The specific time limits come from the Act, so do not rely on a rule of thumb you heard from a friend or a supplier. Get the dates confirmed for your project, and keep good records in the meantime.

• Keep the signed contract, change orders and any quotes.
• Record the dates work started and finished, and when materials were delivered.
• Keep invoices, receipts and proof of every payment.
• Note the full civic address and the property's legal description or PID.
• Save emails and texts about scope, delays and payment.
• Write down who hired whom, so you can show the chain of contracts.

How the property is identified

Whatever kind of claim or document is involved, it helps to be clear about which land it concerns. A PID is a parcel identification number, and a parcel register must contain the PID assigned to the parcel. A document relating to a registered parcel may describe the land by full text, a short form legal description, or the PID.

• PID: the parcel identification number assigned to the parcel.
• Legal description: can be given in full text or in a short form.
• Property Online: the Province's online real property information system, with browser-based query access to provincial mapping and electronic document submission.

If a parcel has no PID, the owner must request one using Form 1 before submitting a Parcel Description Certification Application. Most documents are submitted electronically by authorized lawyers, and the province recommends a lawyer for real property transactions, including identifying the correct PID and matching the legal description to the parcel.

Property Online users must subscribe and sign a user agreement, and lawyers must be authorized with Property Online to e-submit documents. An authorized lawyer must hold a current Property Online authorized lawyer user agreement with the Minister and a pre-authorized debit agreement between their law firm and the Minister, and electronic registration is done through such lawyers.

What to do next

If a lien is a possibility, act early and keep things in writing. The right step depends on whether you are the owner, the contractor or a supplier.

• Gather your contract, invoices and payment records now.
• Confirm the PID and legal description for the property.
• Ask a lawyer which deadlines apply to your project, and calendar them.
• Do not ignore a notice or claim. Get advice before you respond or pay.
• If you are selling or refinancing soon, raise any payment disputes with your lawyer first.

Frequently asked questions