Builders' Liens in Alberta: Understanding the Process and Costs Involved
If you’re a contractor or supplier in the construction industry, you may have heard about builders’ liens. A builders’ lien is a legal claim that can be placed on a property when work or materials have been provided but not paid for. If you find yourself in this situation in Alberta, it’s important to understand the process and costs involved before filing a builders’ lien. In this article, we’ll explain what a builders’ lien is, when it makes sense to file one, and the steps involved in the process. We’ll also discuss the costs associated with filing a builders’ lien and the options available to expedite the process.
What is a Builders' Lien?
A builders’ lien is a legal claim that can be placed on a property by contractors, subcontractors, and suppliers when they have provided work or materials but have not been paid. In Alberta, the Builders’ Lien Act governs the process for filing a builders’ lien. The lien gives the claimant a security interest in the property, meaning that if the property is sold or refinanced, the claimant will be paid out of the proceeds.
When Does it Make Sense to File a Builders' Lien?
Filing a builders’ lien should be a last resort after all other attempts to collect payment have failed. If you’ve tried to negotiate with the property owner or general contractor and have not been successful, a builders’ lien may be the best way to protect your interests. However, it’s important to note that filing a builders’ lien can be a lengthy and costly process, so it should only be done after careful consideration.
Steps Involved in Filing a Builders' Lien
Step 1: Notice of Intent to Register a Lien
Before filing a builders’ lien, you must first serve a Notice of Intent to Register a Lien on the owner of the property, as well as the general contractor (if there is one). This notice informs them that you intend to file a builders’ lien if payment is not received.
Step 2: Registering the Lien
If payment is still not received after serving the Notice of Intent, you can proceed with registering the builders’ lien. This involves completing a Lien Statement and registering it with the Alberta Land Titles Office.
Step 3: Enforcement of the Lien
If payment is still not received after registering the builders’ lien, you may need to take legal action to enforce it. This could involve taking the matter to court or arbitration, depending on the circumstances.
Costs Associated with Filing a Builders' Lien
Filing a builders’ lien can be expensive, and costs can vary depending on the circumstances. Some of the costs to consider include:
- Filing fees: There are fees associated with registering the builders’ lien with the Alberta Land Titles Office.
- Interest: If the property owner or general contractor eventually pays the debt, they may be required to pay interest on the amount owing.
- Legal fees: You may need to hire a lawyer to help you with the process of filing a builders’ lien and enforcing it.
Expedited Services
If you need to file a builders’ lien quickly, there are expedited services available that can help speed up the process. These services may include:
- Rush filing: This involves paying an additional fee to expedite the registration of the builders’ lien.
- Demand letters: A demand letter can be sent to the property owner or general contractor to try to speed up payment.
- Legal action: If necessary, legal action can be taken to enforce the builders’ lien.
Conclusion
Filing a builders’ lien should be a last resort when all other attempts to collect payment have failed. It’s important to understand the process and costs involved before filing a builders’ lien in Alberta. Serving a Notice of Intent to Register a Lien, registering the lien with the Alberta Land Titles Office, and enforcing the lien can be a complex and costly process. Therefore, it’s crucial to consider all options before proceeding with a builders’ lien.
However, if filing a builders’ lien is the best course of action, there are expedited services available to help speed up the process. Rush filing, demand letters, and legal action can all help expedite the process of filing a builders’ lien and enforcing it.
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If you’re facing a debt or damage claim and need someone to fight for your rights, contact U-SUE today. Our team of experienced agents is ready to assist you in your pursuit of justice.
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FAQs
A: Yes, subcontractors are eligible to file a builders’ lien in Alberta if they have provided work or materials and have not been paid.
A: The deadline for filing a builders’ lien in Alberta is 45 days after the last day the claimant provided work or materials.
A: Yes, a builders’ lien can be filed on both commercial and residential properties in Alberta.
A: Yes, a builders’ lien can still be filed if the work was done without a written contract. However, it may be more difficult to prove the amount owing without a written contract.
A: Yes, a builders’ lien can be removed once payment has been received or a settlement has been reached. The claimant can file a Lien Removal Certificate with the Alberta Land Titles Office to remove the lien.
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