Contractors: Why Is It Important For You To Be Directly Involved In The Work?

Legal hypothecs in favour of persons taking part in building construction or renovation are an excellent way for contractors to protect their claims. In addition to being subject to strict procedural requirements, legal hypothecs may benefit only a limited number of parties. Moreover, a recent court decision serves as a reminder that contractors are not shielded from a challenge in this regard.

Strict Procedural Requirements

The general principles governing legal hypothecs are well known. They exist by virtue of the law alone and, save for contract termination in certain circumstances, do not depend on any other formalities to come into effect. To extend the validity of a legal hypothec, however, a notice must be registered by the holder within 30 days of completion of the work; furthermore, the owner of the immovable must be notified.