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ARTICLE · 05 MARCH 2014

Landlords’ Protection From Mechanics’ (Builders’) Liens

Canadian provinces have enacted legislation that allows a claim for a lien against real property.

CanadaReal Estate and Construction

Canadian provinces have enacted legislation, generally known as Builders' Lien or Mechanics' Lien Acts that allow a claim for a lien against real property. A contractor, doing work for a tenant, is given an opportunity to make the landlord's interest in the property subject to the lien in addition to the tenant's interest. At the same time, the legislation provides protection to landlords and owners from being unwittingly bound by liens against their property for work commissioned by their tenants. This protection can be found in section 12(1) of New Brunswick's Mechanics' Lien Act, RSNB 1973, c M-6 which was recently considered by Justice McNally of the New Brunswick Court of Queen's Bench in Penniac Construction Limited v. Cominar Real Estate Investment Trust et al., 2013 NBQB 232 and wherein McNally J. followed Ontario judicial interpretations of what constitutes "notice to landlords", which could bind their property and make them liable to pay such a lien, under

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