A claim against the title to real property for money owing. A lien may be filed by a supplier or a subcontractor who has provided labour or materials for your new home but has not been paid. A lien must be properly filed by a claimant. It has a limited life, prescribed by statute requiring further legal process within 180 days. If the lienholder takes action within the prescribed time, the homeowner may be obliged to pay the amount claimed by the lienholder or a properly determined Builders’ Lien Fund in which all lienholders share. Alternatively, the lienholder may force a sale of the property to pay off the debt.
Depending on who holds title to the property and/or under whose name the mortgage is registered during construction, you may retain a Builders’ Lien Holdback. A standard holdback amount is 10% of the construction cost (excluding land).These funds are generally held in trust by the builder’s lawyer and are released to the builder at the expiration of the legislated Builders’ Lien Holdback period provided that no liens have been registered on title at that time.
The Alberta New Home Warranty Program safeguards the construction process by providing funds towards completion costs or the discharge of Builders’ Liens. This includes monies towards excess legal fees that may be incurred by the purchaser. For complete Builder Performance Protection coverage info, go to www.albertanewhomewarranty.com
from the municipality by the property owner or contractor before a building can be erected or repaired. It must be posted in a conspicuous place until the job is completed and passed as satisfactory by a municipal building inspector.