How Long Do You Have to Register a Builders' Lien in Alberta?

If you supplied materials, did work or were not paid for wages on an Alberta construction project, a builders' lien can help secure your claim against the land. But liens run on short deadlines, and missing one can end your claim on the property.

The law is now called the Prompt Payment and Construction Lien Act. It was formerly known as the Builders' Lien Act, so older articles may use that name or show older time periods. This article explains how the deadlines work in plain terms.

This article covers the law of Alberta.

The deadline to register a lien

Section 41 of the Prompt Payment and Construction Lien Act sets the time to register. For materials, the period ends 60 days after the last materials are furnished or the contract to furnish them is abandoned.

For a contractor or subcontractor, the period ends 60 days from the day the contract or subcontract is completed or abandoned. For services it is 60 days from completion of the services, and for wages it is 60 days from completion of the work.

The period is 90 days instead of 60 for improvements to oil or gas wells and for concrete-related improvements.

What does not change the deadline

The deadline is not extended just because something improperly done or omitted is later corrected. Going back to fix a deficiency or finish a missed item therefore does not restart the clock.

If a lien is not registered within the section 41 time limit, it ceases to exist. Because of this, it is safer to work out your date early and not assume you have extra time.

After registration: the 180-day step

Registering is not the end of the process. 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.

The court clerk may grant a certificate of lis pendens to a lienholder who is a party to the proceedings, and a party may register it at the land titles office.

You may have heard that a lien expires after two years. That is a mix-up. The Act's expiry period is 180 days. 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.

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.

The owner's 30-day notice

An owner or other affected person can serve written notice on the registered lienholder to commence an action. 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 is by personal service, single registered mail to the address for service in the statement of lien, or delivery to that address. This is why the address for service in your statement of lien matters. This notice rule does not apply where security is given or payment is made into court and the lien is removed from title.

How holdback timing fits in

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.

Payment of the major lien fund after 60 days from completion discharges the owner's liability unless a statement of lien is registered. In practice, a lien registered in time keeps the holdback available to claimants, while a late one may find the money already paid out.

What to do next

• Identify which kind of claim you have: materials, contract or subcontract work, services or wages.
• Work out your deadline from the right starting event, and check whether the 90-day rule could apply.
• Do not rely on later repairs or fixes to extend your time.
• Register your lien in time, then diarize the 180-day date to start an action and register a certificate of lis pendens.
• Keep your address for service current and watch for any notice to commence an action.
• Check the current text of section 41 and speak with a lawyer, since the Act has been amended and your facts matter.

Frequently asked questions