- In most cases a lien must be registered within 60 days of the end of the work, services or materials, and within 90 days for oil and gas well and concrete-related improvements.
- A registered lien ceases to exist unless, within 180 days of registration, the claimant starts an action and registers a certificate of lis pendens.
- The two-year figure people hear about is a different rule: after a lis pendens is registered, an interested party can apply to vacate it if no trial has been held within 2 years.
A builders' lien is a claim registered against land by someone who has worked on it or supplied materials and has not been paid. If you are a contractor, it is a tool to get paid. If you are a homeowner, it shows up on your title and can block a sale or a refinance until it is dealt with.
The Alberta statute used to be called the Builders' Lien Act. It is now the Prompt Payment and Construction Lien Act, and its time limits are strict. This article explains the deadlines to register, how long a registered lien lasts, and where the commonly repeated two-year figure actually comes from.
This article covers the law of Alberta.
What a builders' lien is
A lien is a registered claim against the land where the work was done. It is not a court judgment. It tells anyone looking at the title, including a buyer or a lender, that someone says they are owed money for the improvement.
Contractors, subcontractors, workers and material suppliers can all be lienholders. Because the lien attaches to the land rather than only to a person, owners often care about it even if they have already paid their own contractor. That is why holdback matters, which is covered below.
Deadline to register the lien
The time to register depends on what the claim is for. Missing it is serious, because a lien that is not registered within the time limit ceases to exist.
| Type of claim | Registration period |
|---|---|
| Materials | 60 days after the last materials are furnished or the contract to furnish them is abandoned |
| Contractor or subcontractor | 60 days from completion or abandonment of the contract or subcontract |
| Services | 60 days from completion of the services |
| Wages | 60 days from completion of the work |
| Oil or gas well improvements, and concrete-related improvements | 90 days instead of 60 |
Fixing a deficiency or finishing something that was missed does not automatically restart the clock. The deadline is not extended just because something improperly done or omitted is later corrected.
How long a registered lien lasts
Registering is only the first step. A registered lien ceases to exist unless, within 180 days from the date it is registered, the claimant commences an action to enforce it and registers a certificate of lis pendens. A lis pendens is a notice on title that a court case about the land is under way.
Many people believe the period is two years. The Act's own expiry period for an unenforced lien is 180 days, not two years.
There is an exception. If the court has ordered the lien removed from title because security was given or money was paid into court, the lien as a charge on that money or security does not cease merely because no lis pendens was registered or no action was started within 180 days.
Where the two-year figure comes from
A lien that has been continued by a registered lis pendens lasts until the proceedings are concluded or the certificate of lis pendens is discharged, whichever is later. 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.
So two years is a point at which an owner or other interested party may ask the court to act. It is not an automatic expiry date. How a court treats such an application depends on the facts, including the reasons for any delay, so it is worth getting advice before relying on it.
Practical steps for contractors and owners
Owners also have a protection tied to timing. 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 holdback 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.
- Contractors: write down the last day you supplied materials or finished the work, and count forward from the correct date for your type of claim.
- Contractors: diarize both the registration deadline and the 180-day action deadline as soon as you register.
- Owners: keep records of completion dates, any certificate of substantial performance, and holdback payments.
- Owners: check your title for registered liens before you pay out the holdback.
- Everyone: confirm dates with a lawyer, because the statute has been amended and the dates decide whether a lien exists at all.
Frequently asked questions
How long do I have to register a builders' lien in Alberta?
For most claims it is 60 days from the end of the contract, services, work or supply of materials. For oil or gas well improvements and concrete-related improvements it is 90 days. A lien not registered in time ceases to exist.
Does a lien expire after two years?
Not by that rule. A registered lien ceases to exist unless an action is started and a certificate of lis pendens is registered within 180 days of registration. Two years is the point after a lis pendens at which an interested party may apply to vacate it if no trial has been held.
Does fixing a deficiency give a contractor more time?
No. The deadline is not extended just because something improperly done or omitted is later corrected.
Can a lien stay on title once security is posted?
If the court orders the lien removed from title because security was given or money paid into court, the claim becomes a charge on that money or security instead. The 180-day rule does not end it merely because no action was started in that time.
Sources
- Prompt Payment and Construction Lien Act, RSA 2000 c P-26.4, s. 41(1) (King's Printer) — kings-printer.alberta.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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