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ARTICLE · 14 MAY 2018

When Can A Lien Be Secured For Less Than Face Value?

Borden Ladner Gervais LLP
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This decision confirms that a judge should exercise caution in favour of the lien claimant in determining the appropriate amount of security.

CanadaReal Estate and Construction
Krista Johanson
Krista Johanson
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The B.C. Court of Appeal last week released reasons for judgment addressing the factors to be considered where an owner seeks to secure a claim of builders lien for less than the claim's full value. This decision confirms that a judge should exercise caution in favour of the lien claimant in determining the appropriate amount of security.

Decision Criteria and Evaluation

When an owner (or general contractor) seeks, under section 24 of the Builders Lien Act, to remove a claim of lien from title by posting security for less than the lien's full value (or to reduce the value of already-posted security), the Court asks two questions:

  1. should be taken into account for the purposes of security?

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