ARTICLE · 09 JANUARY 2019

Lien Rights – When The Developer Doesn't Have An Interest In The Land

McLennan Ross LLP

In an earlier article, we warned of the risk of loss of lien rights if a transfer of land occurs during construction. A 2018 court decision reminds us that there is also a risk of loss ...

CanadaReal Estate and Construction

McLennan Ross LLP

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In an earlier article, we warned of the risk of loss of lien rights if a transfer of land occurs during construction. A 2018 court decision reminds us that there is also a risk of loss of lien rights if the party contracting the work doesn't have a legal interest (ownership) in the land, such as when (for example) an expected transfer of land doesn't go through.

The Recent Example

In Georgetown Townhouse GP Ltd v Crystal Waters Plumbing Company Inc, 2018 ABQB 617, the developer/owner Georgetown agreed to sell 48 lots to ReidBuilt Homes. The contract between Georgetown and Reidbuilt allowed ReidBuilt to occupy the lands and begin construction. However, the lands would be transferred by Georgetown only upon sale of the lots to individual homebuyers.

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Lien Rights – When The Developer Doesn't Have An Interest In The Land

The Recent Example

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