ARTICLE · 21 APRIL 2011

Developing Builders’ Lien Law: Acera Developments Inc. v. Sterling Homes Ltd., 2010 ABCA 198

Dentons Canada LLP

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In the Acera Developments case, the Alberta Court of Appeal was asked to consider the validity of a builders’ lien filed by a homebuilder on lands owned by a developer.

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E. Jane Sidnell

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In the Acera Developments case, the Alberta Court of Appeal was asked to consider the validity of a builders' lien filed by a homebuilder on lands owned by a developer. In particular, the Court of Appeal considered whether a land developer can be an "owner" under the Builders' Lien Act (the "Act") when a lien is registered by a homebuilder.

Acera was preparing to develop a 44 acre, mixeduse subdivision in Cochrane, Alberta, a bedroom community outside of Calgary. In June 2007, Sterling agreed to purchase 136 four plex townhouse lots and paid deposits totalling $2.5 M on the $9.9 M purchase price (the "Purchase Agreement").

The Purchase Agreement contained a condition precedent that Acera would register the plan of subdivision before December 31, 2007. If the condition precedent was not met, the Purchase Agreement was to be of no force and effect.

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