Builders' liens are "creatures of statute". A
builders' lien is a new right created by lien legislation that
would not otherwise exist at common law. As such, a lien claimant
must bring itself strictly within the statutory framework in order
to take advantage of these statutory rights.
Justice Khullar's recent Advantage Custom Homes
Inv. v. Waterman, 2018 ABQB 25 decision serves as a good
reminder that Alberta courts will strictly interpret lien
legislation when it comes to the ability to register a lien.
The Non-Existent Company's Lien
The facts in Advantage were fairly
straightforward. Owners of a piece of land entered into a project
management contract with 7083335 Canada Inc. for the construction
of a home on the lands. The contract was created in the spring of
2015. Work proceeded, and during the initial stages of the work
7083335 Canada Inc. invoiced and was paid for its work by the
Owners.