Lien FAQs
Below you will find some Lien FAQS. If you do not find the answers you are looking, don't hesitate to ask. It is impossible to put all the Lien FAQS on a single web page. A Lien-Pro professional will be happy to assist you.
| Q: | What is a lien or a caveat? |
| A: | A lien or a caveat is a tool used to secure your financial interest against real estate, leasehold, or a vehicle for the work and/or supplies provided to maintain or improve the asset. For example:
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| Q: | How long do I have to file my lien or caveat? |
| A: | A Builders' lien, also known as a Construction or Mechanics' lien must be filed within very specific deadlines. To check your deadline – consult with our lien calculator for more information. Certain circumstances may extend your lien deadline, so we recommend consulting with a qualified legal professional for their expert opinion. A Repairers' or Garagekeepers' lien generally must be filed within 21 days of the release of the motor vehicle to your customer. Not available in British Columbia. A caveat for unpaid condominium fees may be filed at any time while the owner holds title to the condominium unit. Not available in British Columbia. |
| Q: | After I submit a lien or caveat application to Lien-Pro, what happens? |
| A: | The staff at Lien-Pro will call you to confirm receipt of your request and clarify the details of your claim. They will then file the lien or caveat on your behalf. Once the registration of your lien or caveat is completed, a copy is sent to you as verification. Your customer, as well as the property owner, will receive a copy of the land title showing that your lien or caveat has been placed. Finally, you will receive a copy of your credit card receipt via Canada Post for your records. |
| Q: | How long does it take to get paid once I file a lien? |
| A: | It has been our experience that lien claimants usually receive immediate payment about 50% of the time. The remaining 50% generally end up in litigation due to various disputes. Lien-Pro recommends that if you have not entered into serious negotiations with your customer within 30 days of the lien filing date, you should retain a qualified legal professional to protect your lien rights. |
| Q: | What are the benefits of filing a lien? |
| A: | Placing a lien has several benefits. One of the major benefits to placing a lien is its ability to delay the release of funds to a project. For example, if you place a lien against a property, the general contractor will not be able to receive funds from the bank until the lien is removed. The presence of a lien on the title is a red flag to a bank. The bank will not want to release funds to a project that is having issues with its stakeholders. The inability to receive additional funds is a major factor that often helps you receive your payment. A second benefit to filing a lien is the ability to prevent the sale/remortgaging/transfer of a property. For example, if you provided work to a newly built home in a growing development and have not been paid; if you file a lien, the new house will not be able to be sold until your lien is removed. A new home buyer is not going to want to buy a house with a lien on it. The presence of a lien and its ability to hold up the sale of a property is a major benefit to you. You can hold up the sale until you have received your money. A third benefit to filing a lien is your ability to become a secured interest holder. For example, if you provided work for a company that later goes bankrupt or goes into receivership, you can place a lien and become a secured interest holder. As a secured interest holder you are given priority over non-secured interest holders in the event you are paid out. Becoming a secured interest holder helps you establish your place and shows your involvement in a project. |
| Q: | What is the difference between filing a lien through Lien-Pro vs. a law firm vs. filing myself? |
| A: | The main differences are cost and expertise. Lien-Pro's lien fees can be up to 40% less than a lawyer's fee to do the same work. Lien-Pro's staff are knowledgeable in the areas of filing and discharging Builder's Liens. We can provide similar services to a law firm at almost half the cost! The difference between filing a lien on your own and filing through Lien-Pro is our team is extremely knowledgeable and we have the expertise to file liens. It is all we do! Lien-Pro is up-to-date on all of the most recent lien legislation and we are experts in our field. Rather than completing the searches, preparing the documentation and filing the lien yourself - to have it later rejected due to a technicality, let Lien-Pro take care of the hassle and have the lien filed right the first time. Lien-Pro will handle all of the details while you go back to work and do the work you are best at. |
| Q: | What information is required to file a lien? |
| A: | The information required to file a lien is information that should be available on any one of your invoices. It is very straight forward. Lien-Pro's lien application forms are very straight forward and easy to use. Basically, all we want to know are the four W's and How: Who - Who are you and who owes you the money? Do you know who owns the property? If you don't know who the property owner is, we can find it for you. What - What work did you provide? When - When were you last on site providing services/materials? Where - Where is the property located - legal land description or civic address? If you do not know the legal land description, don't worry! We can find it for you. How - How much are you owed? If you are ever confused or have a question about our forms, feel free to contact us. We are always willing to help! |
| Q: | What if I am passed my lien deadline? What can I do? |
| A: | If you are passed your lien deadline there are several options available: 1. Collection agency - place your account with collections and let qualified debt collectors recover your money. If your customer is located in Canada, we recommend using Priority Credit Recovery Inc.. If your customer is located in the United States, use Account Adjustment Bureau for all of your debt collection needs. 2. Small Claims court - in most provinces you can go to small claims court if your claim is under the small claims limit of your province. In small claims court you can represent yourself and avoid high legal fees. Each province's small claims rules vary so if you decide to make a claim, learn more on the province's small claims website i.e. Service Alberta. 3. Begin legal action - if you are not eligible for small claims court or simply want to sue your customer you can begin legal action with the assistance of a lawyer. |
Should you have other questions don't hesitate to give us a call toll free at 855-224-6650 or email us.