Contractor Put a Lien on Your Alberta Home? How Long It Lasts

Finding a lien on your land title after a renovation or build is stressful. The law that governs it was once called the Builders' Lien Act. It is now the Prompt Payment and Construction Lien Act, so older guides may use the old name.

A lien does not last forever, and you are not powerless. This article explains the time limits, clears up the common belief that a lien lasts two years, and sets out the tools an owner has to get it off title.

This article covers the law of Alberta.

How long a contractor has to register a lien

For materials, the registration period ends 60 days after the last materials are furnished or the contract to furnish them is abandoned. For a contractor or subcontractor, it ends 60 days from the day the contract or subcontract is completed or abandoned; services and wages also run 60 days from completion.

The period is 90 days instead of 60 for improvements to oil or gas wells and for concrete-related improvements. Correcting something that was improperly done or left out does not extend the deadline.

A lien that is not registered within the time limit ceases to exist. If a lien appears on your title, check the dates of the work first.

How long a registered lien lasts: 180 days, not two years

A registered lien ceases to exist unless, within 180 days from the date it is registered, the claimant starts an action to enforce it and registers a certificate of lis pendens. A certificate of lis pendens is a notice on title that a court case about the land is under way.

The two-year figure comes from a different rule. If no trial has been held within 2 years from registration of the certificate of lis pendens, an interested party may apply to have the certificate vacated and the lien discharged. A lien continued by lis pendens lasts until the proceedings are concluded or the certificate is discharged, whichever is later.

The owner's tools for removing a lien

• Notice to commence an action: you or another affected person can serve written notice on the registered lienholder. If the lienholder does not start an action and register a certificate of lis pendens within 30 days of service, the lien ceases to exist.
• Service: personal service, single registered mail to the address for service in the statement of lien, or delivery to that address.
• Security or payment into court: once a statement of lien is registered, the owner or an authorized mortgagee may give security or pay into court the major lien fund, minor lien fund, or both. On application, the court may order the lien removed from title, and the money or security then stands in place of the land.
• Notice to prove the lien: after a court application to remove the lien is served, a party may serve a notice to prove the lien. The lienholder has 15 days to file an affidavit with detailed particulars, or it loses its lien unless the court allows more time.

Two exceptions matter. The rule in section 45(1) does not apply where security is given or payment is made into court and the lien is removed from title. Also, once a court has removed the lien in that way, the claim against the money or security does not end just because no lis pendens was registered or no action was started within 180 days.

Discharge by the lienholder or by court order

The Registrar must cancel a lien, in whole or in part, on a prescribed-form notice from the lienholder or agent that the lien has been satisfied, or on proof satisfactory to the Registrar that the lien has ceased to exist. Partial cancellation needs a form describing the part that was satisfied. Discharge, in whole or in part, is made on Form 14.

The Registrar must also cancel the lien and any lis pendens certificate on a certified court order cancelling the lien, or on a court clerk's certificate that the amount was paid into court or the land was sold to satisfy the lien.

Holdback, and what to do next

Holdback connects to all of this. An owner must retain 10% of the value of the work actually done for 60 days, counted from the certificate of substantial performance if one is issued, or otherwise from completion of the contract. The period is 90 days for oil or gas well and concrete-related improvements. Paying the major lien fund after 60 days from completion discharges the owner's liability unless a statement of lien is registered.

• Get a current title search and a copy of the statement of lien.
• Note the dates the work or materials ended and the date the lien was registered.
• Count the 60, 90 and 180-day periods against those dates.
• Check whether a lawsuit and lis pendens were filed.
• Keep records of payments and holdback.
• Talk to a lawyer before serving notices or paying money into court.

The statute was renamed and amended, so sections 41, 43 and 46 should be re-checked against the current version before you rely on any deadline. A lawyer can confirm how the rules apply to your facts.

Frequently asked questions