or (b) the work to be done under the sub-contract, the services to be provided under the sub-contract and the supplying of materials to be supplied under the sub-contract have been abandoned; whichever first occurs, the holdback may be reduced (c) by 7.5% of the sub-contract price; or (d) if there is no specific sub-contract price, by 7.5% of the value of the work done, the services provided and the materials supplied under the sub-contract; plus the pro rata share of any accrued interest in the holdback account applicable to the sub-contract, but this subsection does not apply while the registration of a lien arising under the sub-contract continues in effect under section 49. Payment certifiers certificate as to sub-contract 25(5) Where a contract requires a payment to be made upon a certificate of a payment certifier, the payment certifier, upon application by a sub-contractor with respect to a sub-contract and upon being satisfied that the sub-contract has been substantially performed, shall, within seven days after the payment certifier receives the application or after the sub-contract has, in the payment certifier's opinion, been substantially performed, whichever is the later, give or cause to be given a certificate of substantial performance of the sub-contract in Form 8 of the Schedule to the sub-contractor, the contractor and the owner. Certificate where no payment certifier 25(6) Where a contract does not provide for payment to be made upon a certificate of a payment certifier, the contractor, upon application by a sub-contractor with respect to a sub-contract and upon being satisfied that the sub-contract has been substantially performed, shall, within seven days after the contractor receives the application or after the sub-contract has, in the contractor's opinion, been substantially performed, whichever is the later, give or cause to be given a certificate of substantial performance of the sub-contract in Form 8 of the Schedule to the sub-contractor and the owner. Certificate of substantial performance by sub-contractor 25(7) Where a contract does not provide for payment to be made upon a certificate of a payment certifier, any sub-contractor under that contract on request of any of their sub-contractors shall, within seven days after the sub-contractor receives the application or after the sub-contract has, in the sub-contractor's opinion, been substantially performed, whichever is the later, give or cause to be given a certificate of substantial performance of the sub-contract in Form 8 in the Schedule to the contractor and the owner. Judge's order for certificate 25(8) Where a person required to give a certificate of substantial performance under subsection (5), (6) or (7) fails or refuses to do so, the sub-contractor who has applied for the certificate or any person entitled to a lien in respect of work done, services provided or materials supplied under the sub-contract of the sub-contractor may apply to a judge who, upon being satisfied that the sub-contract has been substantially performed and that the certificate of substantial performance of the sub-contract should have been given, may, upon such terms and conditions as to costs and otherwise as the judge deems just, make an order that the sub-contract has been substantially performed, and the order has the same force and effect as if a certificate of substantial performance of the sub-contract had been issued under subsection (5), (6) or (7) as the case may be. Interest payable to sub-contractor 25(9) Where, under subsection (1), (2), (3) or (4), a holdback under a contract is reduced or paid out and the reduction or payment out includes accrued interest in the holdback account or pro rata share thereof, any sub-contractors who are entitled under sub-contracts to payment from the holdback or from the amount by which the holdback is reduced are entitled also to a pro rata share of the accrued interest in the holdback account. S.M. 2023, c. 30, s. 9 . Lienholders charge on holdback 26 Each lienholder who has a lien arising under a contract or sub-contract has a charge upon that part of the holdback to which the person through whom the lien is derived is entitled. Effect of payments made with holdback 27(1) Where the person primarily liable for payment under a contract has deducted and retained the holdback in accordance with this Act, all payments under the contract in excess of the holdback, made in good faith by the person primarily liable for the payment, before the registration of a lien by a person claiming a lien as against the owner, and payments permitted under section 25, operate as a discharge, pro tanto of the lien. Effect of payments without holdback 27(2) Where the person primarily liable for payment under a contract has not deducted and retained the holdback in accordance with this Act, all payments under the contract made in good faith by the person primarily liable for the payment, before the registration of a lien by a person claiming a lien as against the owner, operate as a discharge, pro tanto of the lien, but only to the extent of the amount of the payment in excess of the holdback which should have been deducted and retained, and the person primarily liable for the payment continues to be liable to the lienholder for the amount which should have been deducted and retained as holdback in respect of the contract. Payment of holdback where no liens 27(3) Payment of the holdback retained under this Act in respect of a contract may be validly made after the expiration of 60 days mentioned in subsection 24(1) or (2), as the case may be if, at the time the holdback is paid, there are no liens registered against the land to which the contract relates. Payment of holdback where liens are registered 27(4) Where, on the expiration of the 60 days mentioned in subsection 24(1) or (2), as the case may be, there are liens registered against the land to which a contract relates, the holdback retained under this Act in respect of the contract may be validly paid for the purpose of obtaining discharges of all those registered liens unless before the payment of the holdback an action has been commenced under this Act to enforce one or more of those liens. Liability of corporation directors 27(5) Where the person primarily liable for payment under a contract is a corporation, and that person makes payment under the contract without deducting and retaining the holdback in accordance with this Act, if the corporation is unable to satisfy the liability under subsection (2), the directors and officers of the corporation who knowingly assented or acquiesced in the failure to deduct or retain the holdback are jointly and severally liable for the amount for which the corporation is liable under subsection (2) and which the corporation fails to satisfy. Where holdback not to be applied 27(6) Where the contractor or sub-contractor defaults in performing the contract or sub-contract, the holdback shall not, as against the lien claimant who by virtue of section 26 has a charge thereon, be applied by the owner or contractor (a) to complete the contract or sub-contract; or (b) in payment of damages for non completion of the contract or sub-contract by the contractor or sub-contractor; or (c) in payment or satisfaction of any claim against the contractor or sub-contractor; or (d) for any other purpose to remedy the default. Charge on further amounts payable by Crown or municipality 27(7) Where a lien does not attach to land by reason of section 16, and a person claiming the lien gives to the owner or the contractor or a sub-contractor notice in writing of the lien, the owner, contractor or sub-contractor so notified shall retain out of amounts payable to the contractor or sub-contractor under whom the lien is derived an amount equal to the amount claimed in the notice. S.M. 2023, c. 30, s. 10 . Interest on holdback account 28 Nothing in this Act obliges an owner or a contractor to obtain a higher interest rate for sums deposited in a holdback account than the rates prevailing and offered by the bank, trust company or credit union in which the holdback account is opened. Amendment of contracts 29 Every contract and sub-contract under which a lien may arise shall be conclusively deemed to be amended in so far as is necessary to bring it into conformity with this Act. Payments in good faith without notice of lien 30 Where an owner or a contractor chooses to make payments to a person referred to in section 13 for or on account of a debt justly due to the person for work done, services provided or materials supplied to be used as mentioned in section 13, and within three days afterwards gives, by letter or otherwise, to the contractor or the contractor's agent, or to the sub-contractor or the sub-contractor's agent, as the case may be, written notice of the payments, the payments shall, as between the owner and the contractor or as between the contractor and the sub-contractor, as the case may be, be conclusively deemed to be payments to the contractor or sub-contractor, as the case may be, on the contract or sub-contract generally, but not so as to reduce the amount required to be retained by the owner under section 24. Priority of lien 31 A lien has priority over all judgments, executions, assignments, attachments, garnishments and receiving orders, recovered, issued or made or registered in the registry office after the lien arises, and over all payments or advances made on account of any conveyance or mortgage after registration of a claim for the lien in accordance with this Act but all payments made, before registration of a claim for lien, on account of a conveyance or mortgage, have priority over the lien. Agreements for purchase 32 Where the purchase money under an agreement for the purchase of land, or part thereof, is unpaid and no conveyance has been made to the purchaser, the purchaser shall, for the purposes of this Act, be conclusively deemed to be a mortgagor and the seller to be a mortgagee of the land to the extent of the unpaid portion of the purchase money. Priority among lienholders 33 Subject to section 34 and subsections 35(3) and 56(1), (a) no person entitled to a lien on land or to a charge on moneys under this Act is entitled to any priority or preference over another person entitled to a lien on that land or to a charge on those moneys under this Act; (b) all lienholders rank pari passu for the amounts of their several liens; and (c) the proceeds of any sale shall be distributed as may be directed by the court. Liens for wages 34(1) Every worker who has a lien for wages for work done or services provided under a contract or sub-contract has, to the extent of 60 days wages, priority over all liens that are not for wages and that are derived through the same contractor or sub-contractor to the extent of, and on, the holdback and to which the contractor or sub-contractor through whom the lien is derived is entitled and all workers whose liens have priority under this section rank pari passu for the amounts of their several liens. Enforcing lien for wages when contract not fulfilled 34(2) Every worker is entitled to enforce a lien in respect of a contract or sub-contract not completely fulfilled and, notwithstanding anything in this Act to the contrary, may serve a notice of motion on the proper persons, returnable in four days after service before a judge asking for judgment on the worker's claim or lien, particulars of which shall accompany the notice of motion, duly verified by affidavit. Calculating percentage in certain cases 34(3) Where the contract or sub-contract has not been completely fulfilled when a lien is claimed by a worker, the holdback shall be calculated on the work done, the services provided or the materials supplied by the contractor or sub-contractor by whom the worker was employed. Devices to defeat priority 34(4) Every device adopted by an owner, contractor or sub-contractor to defeat or which, if valid, would defeat the priority given under this section to workers for their wages is, as against those workers, void. S.M. 2023, c. 30, s. 10 . Removal of materials during lien 35(1) During the continuance of a lien, no portion of the materials affected by it shall be removed to the prejudice of the lien and any attempts at such removal may be restrained on application to a judge. Costs 35(2) A judge to whom an application is made under subsection (1) may make such order as to costs of, and incidental to, the application and order as the judge deems just. Certain materials not subject to execution 35(3) Where any materials are actually placed and furnished to be used in the performance of a contract or sub-contract the materials are subject to a lien in favour of the person supplying them until incorporated in the structure or land under the contract. Architects and engineers excluded 36 An architect or engineer retained by an owner, contractor or sub-contractor under an agreement, which does not create the relationship of employer and employee, to provide architectural or engineering services in respect of construction or improving land (a) does not have a lien or a claim for lien against or in respect of the structure or land or the land on which the structure is constructed for the professional fees and charges of the architect or engineer; and (b) is not a contractor, sub-contractor or worker for the purposes of this Act; and this Act does not apply to the agreement under which the architect or engineer is retained or to the recovery of the professional fees and charges of the architect or engineer. S.M. 2023, c. 30, s. 11 . REGISTRATION OF LIEN Registration 37(1) Upon presentation of a claim for lien at a registry office for the land titles district in which the land against which the lien is claimed is situated, and upon payment of the fee prescribed for registration, the registrar shall, if the claim for lien conforms with the appropriate form and with section 38, register the claim for lien so that it appears as an encumbrance against the land described in the claim for lien. Registration of two copies of claim 37(2) Where a part of the land subject to a lien is under The Real Property Act and a part is under The Registry Act , two copies of the claim for lien may be registered but if only one copy is registered, the person claiming the lien shall cause to be endorsed on the copy a notation showing whether it is to be registered under The Real Property Act , or The Registry Act , and it shall be registered accordingly. Registration under both systems 37(3) Where two copies of a claim for lien are registered in a land titles office, one shall be registered under The Real Property Act and one under The Registry Act , and that part of the land described in each copy which falls either under The Real Property Act or under The Registry Act shall be affected by the claim for lien. Lien on mineral location for mining 37(4) Where a claim for a lien is made upon a mineral location as defined in The Mines and Minerals Act , in respect of which the Crown has given to any person a disposition of mineral rights other than oil and natural gas rights, and for which no certificate of title has been issued under The Real Property Act and no grant has been registered under The Registry Act , the claim for lien and any pending litigation order, judgment, order or other document issued from the court in respect thereof, and any other document relating thereto, shall be registered in the office of the recorder of the mining district in which the land is situated. Registration of claim document re disposition 37(5) Where a claim for lien is made upon a disposition under The Oil and Gas Act of oil, gas, helium, hydrogen or oil shale rights owned by the Crown, the claim for lien, any judgment, pending litigation order or other order or document issued from the court in respect of the claim, and any other document relating to the claim, shall be registered in the office of the registrar under The Oil and Gas Act . Registration in respect of Crown lands 37(6) Where a claim for lien is made upon an interest or estate in Crown land that is not a mineral location, if no grant of the land has been made by the Crown, the claim for lien and any pending litigation order, judgment, order or other document issued from a court in respect thereof, and any other document relating thereto shall be registered in the office of the director of Crown lands. S.M. 1991-92, c. 9, s. 250 ; S.M. 1993, c. 4, s. 225 ; S.M. 1993, c. 8, s. 2 ; S.M. 2025, c. 10, s. 18 . Contents of claim for lien 38(1) A claim for lien shall state (a) the name and residence of the person claiming the lien and of the owner of the land to be charged (or of the person whom the person claiming the lien, or the person's agent, believes to be the owner of the land to be charged) and of the person for whom and upon whose credit the work was or is to be done, the services were or are to be provided or the materials were or are to be supplied; (b) the time or period within which the work was or is to be done, the services were or are to be provided or the materials were or are to be supplied; (c) a short description of the work done or to be done or the services provided or to be provided or the materials supplied or to be supplied; (d) the sum claimed as due or to become due; (e) a description of the land to be charged, sufficient for the purpose of registration; and (f) where credit has been given by the lien claimant for payment for their work or services of materials, the date of expiry of the period of credit. Form of claim 38(2) The claim for lien may be in Form 1, 2 or 3 in the Schedule, and shall be verified by the affidavit in Form 4 in the Schedule, of the person claiming the lien or the person's agent or assignee. Address for service to be shown on claim 38(3) Every claim for lien shall show, below the signature thereon of the person claiming the lien, or the person's agent or assignee, an address for service upon the lien claimant, which address shall, after the registration of the lien be the place at or to which service may be made or notice may be sent under this Act, upon or to the lien claimant. What may be included in claim 39 A claim for lien may include claims against any number of parcels of land and any number of persons claiming liens upon the same land may unite in a claim for lien, but where more than one lien is included in one claim for lien, each lien shall be verified by affidavit as provided by subsection 38(2). Liability for grossly exaggerated claims 40 In addition to any other ground on which the person may be liable, any person who registers a claim for lien (a) for an amount grossly in excess of the amount due to them or which the person expects to become due to them; or (b) where the person knows or ought to know that the person does not have a lien; is liable to any person who suffers damage as a result unless the person satisfies the court that the registration of the claim for lien was made, and the amount for which the lien was claimed was calculated, in good faith and without negligence. Claims not invalidated for informality 41(1) Substantial compliance only with sections 38 and 39 is sufficient and no lien is invalidated by reason of failure to comply with any of the requirements of those sections unless, in the opinion of a judge, the owner, contractor, sub-contractor, mortgagee or other person is prejudiced by the failure and then only to the extent to which the person is prejudiced by the failure. Liens must be registered 41(2) Nothing in this section dispenses with the registration of the lien required by this Act. Action must be based on registered lien 41(3) No action may be commenced under this Act to enforce a lien unless a claim for lien with respect to the lien is registered under this Act. S.M. 1993, c. 8, s. 3 . Lienholder a purchaser pro tanto 42 Where a claim for lien is registered, the person entitled to the lien shall be deemed a purchaser pro tanto, and within the provisions of The Registry Act but, except as otherwise provided in this Act, The Registry Act does not apply to a lien. Time within which claim may be registered by contractor 43(1) Except as provided in section 44, a claim for lien by a contractor may be registered before or during the performance of the contract or within 60 days after the substantial performance or abandonment of the contract, as the case may be. Time within which claim may be registered by sub-contractor 43(2) Except as provided in section 44, a claim for lien by a sub-contractor may be registered before or during the performance of the sub-contract or, (a) within 60 days after the substantial performance or abandonment of the contract; or (b) within 60 days after the substantial performance or abandonment of the sub-contract; whichever first occurs. Time within which claim for materials may be registered 43(3) Except as provided in section 44, a claim for lien for materials may be registered before or during the supplying of the materials or (a) within 60 days after substantial performance or abandonment of the contract; or (b) within 60 days after the supplying of the last materials so supplied; whichever first occurs. Time within which claim for services may be registered 43(4) Except as provided in section 44, a claim for lien for services may be registered at any time before or during the provision of the services or (a) within 60 days after the substantial performance or abandonment of the contract; or (b) within 60 days after the completion of the provision of the services; whichever first occurs. Time within which claim for wages may be registered 43(5) Except as provided in section 44, a claim for lien for wages may be registered at any time before or during the doing of the work or the provision of the services for which the wages are claimed or (a) within 60 days after the substantial performance or abandonment of the contract; or (b) within 60 days after the last work was done or the last services were provided; whichever first occurs. Meaning of substantial performance 43(6) For the purposes of this section, substantial performance of a contract or a sub-contract means the date on which a certificate of substantial performance thereof is given to the owner under section 25 or 46, as the case may be. S.M. 2023, c. 30, s. 12 . Registration of liens for work after substantial performance 44 Where a contract or sub-contract has been substantially performed and the owner, contractor or sub-contractor proceeds to complete it, (a) a claim for lien by a contractor with respect to any work, services or materials remaining to be done, provided or supplied to complete the contract may be registered before or during the doing of the work, the provision of the services or the supplying of the materials, or within 60 days after the completion or abandonment of the contract; (b) a claim for lien by a sub-contractor with respect to any work, services or materials remaining to be done, provided or supplied to complete the sub-contract may be registered before or during the doing of the work, the provision of the services or the supplying of the materials, or within 60 days after the completion or abandonment of the sub-contract; (c) a claim for lien for materials remaining to be supplied to complete the contract may be registered before or during the supplying of the materials or within 60 days after the supplying of the last materials so supplied to complete the contract; (d) a claim for lien for services remaining to be provided to complete the contract may be registered before or during the provision of the services or within 60 days after the completion or abandonment of the services; (e) a claim for lien for wages with respect to any work or services remaining to be done or provided to complete the contract may be registered before or during the doing of the work or the provision of the services or within 60 days after the last work was done or the last services were provided; and (f) the provisions of this Act apply with respect to the lien wherever applicable. S.M. 2023, c. 30, s. 12 . Where lien does not attach to land 45(1) Where a lien does not attach to land by reason of section 16, sections 37, 38 and 39 do not apply. Notice of claim to holdback 45(2) Where a lien does not attach to land by reason of section 16, a person who is claiming the lien shall give notice thereof in writing to the owner in the manner provided by this Act and, subject to subsection (1), the notice shall, for the purposes of this Act be the equivalent of registration of a lien under this Act and this Act applies to the lien, the lienholder and the owner, with such modifications as the circumstances require as though the giving of the notice were registration of the lien under this Act. Giving notice of claim on Crown, etc. 45(3) The notice required under subsection (2) shall be given (a) where the owner of the land or structure is the Crown, to the office prescribed by regulations; (b) where the owner of the land or structure is a Crown agency, to an officer of the Crown agency; and (c) where the owner of the land or structure is a municipality, to the clerk of the municipality. Time for giving notice 45(4) A notice given under subsection (2) shall be given within the times allowed for registration of claim for lien under sections 43 and 44. Contents of notice 45(5) Every notice given under subsection (2) shall set out (a) the name and residence of the person making the claim and of the person for whom and upon whose credit the work was or is to be done, the services were or are to be provided or the materials were or are to be supplied; (b) the time or period within which the work was or is to be done, or the services were or are to be provided, or the materials were or are to be supplied; (c) a short description of the work done or to be done or the services provided or to be provided or the materials supplied or to be supplied; (d) the sum claimed as due or to become due; (e) the address or description of the land or location on or in respect of which the work was or is to be done, the services were or are to be provided or the materials were or are to be supplied; and (f) where credit has been given, by the lien claimant for payment for their work or services or material, the date of expiry of the period of credit. Verification 45(6) A notice given under subsection (2) may be in Form 5, 6 or 7 in the Schedule and shall be verified by an affidavit, in Form 4 in the Schedule, of the person claiming the lien, or the person's agent or assignee. Address for service to be shown on notice 45(7) Every notice given under subsection (2) shall show below the signature thereon of the person claiming the lien, or the person's agent or assignee, an address for service upon the lien claimant, which address shall, after the notice is given, be the place at or to which service may be made or notice may be sent under this Act upon or to the lien claimant. Claims not invalidated for informality 45(8) Subject to subsection (9) substantial compliance with this section is sufficient and no lien is invalidated by reason of failure to comply with any requirement of this section unless, in the opinion of a judge, the owner, contractor, sub-contractor or other person is prejudiced by the failure and then only to the extent to which the person is prejudiced by the failure. Notice must be given 45(9) Nothing in subsection (8) dispenses with the giving of notice required under subsection (2). SUBSTANTIAL PERFORMANCE Certificate of substantial performance by payment certifier 46(1) Where a contract requires a payment to be made upon a certificate of a payment certifier, the payment certifier, upon application by the contractor and upon being satisfied that the contract has been substantially performed, shall, within seven days after the payment certifier receives the application or after the contract has, in the payment certifier's opinion, been substantially performed, whichever is the later, give or cause to be given a certificate of substantial performance of the contract in Form 8 of the Schedule to the contractor and the owner. Certificate of substantial performance by owner 46(2) Where a contract does not provide for payment to be made upon a certificate of a payment certifier, the contractor may, and on request of any of their sub-contractors shall apply to the owner for a certificate of substantial performance and the owner shall, within seven days after the owner receives the application or after the contract has, in the owner's opinion, been substantially performed, whichever is the later, give or cause to be given a certificate of substantial performance of the contract in Form 8 in the Schedule to the contractor. Judge's order for substantial performance 46(3) Where a person required to give a certificate of substantial performance under subsection (1) or (2) fails or refuses to do so, the owner or the contractor or any sub-contractor under the contractor or any person entitled to a lien in respect of the work under the contract may apply to a judge who, upon being satisfied that the contract has been substantially performed and that the certificate of substantial performance of the contract should have been given, may, upon such terms and conditions as to costs and otherwise as the judge deems just, make an order that the contract has been substantially performed, and the order has the same force and effect as if a certificate of substantial performance had been issued in respect thereof under subsection (1) or (2), as the case may be. No appeal 46(4) No appeal lies from an order made by a judge under subsection (3) or under subsection 25(8). Offence to give certificate of substantial performance fraudulently 46(5) Every person who is required under subsection (1) or (2) or under subsection 25(5), (6) or (7) to give a certificate of substantial performance and who wilfully gives or causes to be given a certificate of substantial performance that is fraudulent is guilty of an offence and liable, on summary conviction, to a fine of not more than $10,000. or to imprisonment for a term of not more than two years or to both and every director or officer of a corporation who knowingly assents to or acquiesces in an offence by a corporation under this section is, in addition to the corporation, guilty of the same offence and liable, on summary conviction to a fine of not more than $5,000. or to imprisonment for a term of not more than two years, or to both. Contents of certificate of substantial performance 46(6) A certificate of substantial performance shall set out (a) the name and residence of the owner, the contractor, and where applicable the sub-contractor; (b) a short description of the work done or to be done, the services provided or to be provided and the materials supplied or to be supplied under the contract or sub-contract; (c) the date of substantial performance of the contract or sub-contract; (d) a brief description of the land on or in respect of which the contract or sub-contract was to be performed; (e) the name and residence of the person giving the certificate of substantial performance; and (f) a statement certifying that the person giving the certificate of substantial performance is a person required or authorized to do so under this Act. Manner of giving certificate of substantial performance 47 A certificate of substantial performance is not effective unless it is given to the contractor and the owner and, where it relates to a sub-contract, to the sub-contractor, but where the certificate of substantial performance is given by an owner, a contractor or a sub-contractor, it shall be deemed to have been given to the owner, contractor or sub-contractor, as the case may be. S.M. 2025, c. 11, s. 14 . Certificate not invalidated for informality 48 Substantial compliance with section 46 is sufficient and no certificate of substantial performance is invalidated by reason of failure to comply with any of the requirements of that section unless, in the opinion of a judge, the owner, contractor, sub-contractor, encumbrancer or other person, as the case may be, is prejudiced by the failure and then only to the extent to which the owner, contractor, sub-contractor, encumbrancer or other person is prejudiced by the failure but nothing in this section dispenses with the requirement of giving the certificate of substantial performance as required under section 47. EXPIRY AND DISCHARGE Lien expires if not registered within time 49(1) Every lien that is not duly registered under this Act ceases to exist on the expiration of the time allowed for registration under sections 43 and 44. Lien expires if registered and not proceeded upon 49(2) Every lien that has been duly registered under this Act ceases to exist after the expiration of two years after the date of registration unless in the meantime an action is commenced to realize the claim under this Act or an action is commenced in which the claim may be realized under this Act, and a pending litigation order in Form 9 in the Schedule, in respect of the action, issued from the court in which the action is brought, is registered in the proper land titles office. Liens not attaching to land cease if no notice given 49(3) Every lien which does not attach to land by reason of section 16 and for which no notice is given as required by section 45, ceases to exist on the expiration of the time allowed for giving notice under section 45. Expiry of lien not attaching to land and not proceeded with 49(4) Every lien which does not attach to land by reason of section 16 and for which notice has been given as required under section 45, ceases to exist on the expiration of two years after the date the notice was given as required under section 45, unless in the meantime an action is commenced to realize the claim under this Act or an action is commenced in which the claim may be realized under this Act. Application of subsecs. (1) and (2) to liens not attaching to land 49(5) Subsections (1) and (2) do not apply to liens which, by reason of section 16, do not attach to land. S.M. 1993, c. 8, s. 4 . Notice to lienholder to commence action 50(1) Any person having or claiming a mortgage or charge upon, or claiming any right, title or interest in or to any land in respect of which a claim for lien is registered under this Act may at any time after the registration of the lien, require the registrar to give the lienholder a notice in writing in Form 10 in the Schedule, that the lien shall cease to exist 30 days after the mailing of the notice unless, within that period, (a) an action to realize the claim for lien, or in which the claim for lien may be realized, is commenced; and (b) a pending litigation order in Form 9 in the Schedule in respect of the action, signed by the clerk of the court in which the action is commenced, is registered in the proper registry office. Loss of lien 50(2) Where an action is not commenced and a pending litigation order registered within 30 days after the date of mailing of the notice under subsection (1), the lien ceases to exist and the registrar shall vacate the registration of the lien unless, prior to the expiration of the 30 days, there is registered in the registry office an order of a judge extending the time for commencing the action. S.M. 1993, c. 8, s. 4 . Effect of order to vacate under section 55 51 Notwithstanding sections 49 and 50, if the court orders that a lien be vacated under subsection 55(2) or (3), (a) the lien, as a charge against the money paid into court or against any security given, does not cease to exist because a pending litigation order is not registered; but (b) the lien ceases to exist if no action is commenced within the time allowed for bringing an action under section 49 or 50. S.M. 1993, c. 8, s. 4 . Application of sections 50 and 51 to liens not attaching to land 52 Sections 50 and 51 do not apply to liens which, by reason of section 16, do not attach to land. TRANSMISSION OF LIEN Death of lienholder 53 Where a lienholder dies, the lienholder right of lien survives in their personal representative. Assignment of lien 54(1) The rights of a lienholder may be assigned by an instrument in writing. Assignee registering lien 54(2) Where a lien is assigned before registration, the assignee may register the claim for lien. Assignee registering assignment 54(3) Where a lien is assigned after registration, the assignee may register the assignment thereof in the registry office in which the claim for lien was registered. DISCHARGE OF LIEN Registration of discharge 55(1) A lien may be discharged by the registration in the proper registry office of a discharge of the lien signed by the lienholder or their agent duly authorized in writing and the payment of the prescribed fee for the registration. Vacating lien on payment into court, etc. 55(2) Upon application, a judge may order security or payment into court in an amount equal to the holdback required under this Act as it applies to a particular contract and any additional money payable with respect to that contract but not yet paid but not exceeding the total amount of the claims for liens then registered against a parcel of land and may then order that the registration of those liens be vacated. Vacating registration on other grounds 55(3) Upon application, a judge may order that the registration of a lien be vacated upon any grounds other than those mentioned in subsection (2). Vacating registration of pending litigation order 55(4) Upon application, a judge may, upon proper grounds, order that the registration of a pending litigation order registered under this Act be vacated. Registration of order 55(5) Upon registration in the proper registry office of an order made under subsection (2), (3) or (4), the claim for lien or the pending litigation order to which the order relates shall be discharged. Vacating pending litigation order 55(6) Where an action to realize a lien has been discontinued or dismissed, a certificate of the registrar of the court or any deputy registrar of the court may be registered, and where registered, the certificate discharges and vacates the pending litigation order relating to the action. S.M. 1993, c. 8, s. 5 . Money paid into court, etc., in place of land 56(1) Any money paid into court or any security given under subsection 55(2) stands in place of the land against which the lien was registered and is subject to the claims of (a) the persons whose liens have been vacated; and (b) every person who (i) both at the time of filing the application under subsection 55(2) and at the time of filing application for payment out under subsection (3), has a subsisting claim for lien, and (ii) has registered a claim for lien prior to the time of filing the application for payment out under subsection (3); but the persons whose liens have been ordered vacated have a first charge on the money or security to the extent of any amount, including costs, found by the judge to be owing to them. No reduction of holdback 56(2) Money paid into court or security given under subsection 55(2) does not reduce the amount required to be retained by the owner under section 24. Order for payment out of court 56(3) Where money has been paid into court or security has been given under subsection 55(2), the court may, upon application and upon notice to every person affected, order the money to be paid out or the security to be delivered, as the case may be, to the person entitled thereto. Certain acts not prejudicial to lien 57(1) A registered claim for lien or a notice of lien is not merged, discharged, paid, satisfied, prejudiced or destroyed by (a) the taking of any security for the claim; or (b) the acceptance of any promissory note for the claim; or (c) the taking of any other acknowledgement of the claim; or (d) the giving or extending of time for payment of the claim; or (e) the taking of any proceedings for recovery of the claim; or (f) the recovery of any personal judgment for the claim; unless the lienholder agrees in writing that it shall have that effect. Dealing with promissory note 57(2) Subject to subsections (3) and (4), the discounting or negotiation of a promissory note or other security taken or accepted for a claim for lien does not waive, pay, satisfy, prejudice or destroy the lien but the lienholder taking or accepting the promissory note or other security shall retain the lienholder's lien for the benefit of the holder of the promissory note or other security. Action to be begun 57(3) A person who has given or extended time for payment of any claim for which the person has a lien shall, in order to obtain the benefit of this section, commence an action to enforce the lien within the time limited by this Act, and register a pending litigation order as required by this Act but no further proceedings shall be taken in the action until the expiration of time for payment of the claim. Proving claim in another action 57(4) Notwithstanding that a person has given or extended time for payment of any claim for which the person has a lien, the person may, where an action is commenced by another person to enforce a lien against the same land, prove and obtain payment of the person's claim in the action as if no time had been given for payment of the claim. S.M. 1993, c. 8, s. 6 . RIGHTS TO INFORMATION Particulars of contract, etc. 58(1) Any person entitled to a lien in respect of work done or to be done, services provided or to be provided, or materials supplied or to be supplied in the performance of a contract may, in writing, at any time demand from the owner or the owner's agent and the contractor or the contractor's agent (a) a copy of the contract between the owner and the contractor if the contract is in writing and if the contract is not in writing, a statement of the terms of the contract; (b) a statement of the state of accounts between the owner and the contractor; (c) the name and address of the bank, trust company or credit union in which a holdback account has been opened where required in accordance with this Act and the account number thereof; and (d) a statement as to the particulars of credits to and payments from the holdback account required in accordance with this Act including the dates of the credits and payments, the accrued interest and the present balance. Particulars of sub-contract, etc. 58(2) Any person entitled to a lien in respect of work done or to be done, services provided or to be provided, or materials supplied or to be supplied in the performance of a sub-contract may, in writing, at any time, demand of the contractor or the contractor's agent and the sub-contractor and the sub-contractor's agent (a) a copy of the sub-contract between the contractor and the sub-contractor or between the sub-contractor and another sub-contractor, if the sub-contract is in writing and, if the sub-contract is not in writing, a statement of the terms of the sub-contract; and (b) a statement of the state of accounts between the contractor and the sub-contractor or between the sub-contractor and the other sub-contractor, as the case may be. Information from mortgagee or unpaid vendor 58(3) Any person entitled to a lien in respect of work done or to be done, services provided or to be provided, or materials supplied or to be supplied in the performance of a contract or sub-contract in respect of any land may, in writing, at any time, demand of any mortgagee or any unpaid vendor of the land or the agent of either of them, (a) the terms of the mortgage on the land or the agreement for the purchase of the land; and (b) a statement showing the amount advanced under the mortgage or the amount owing on the agreement, as the case may be. Costs of copies etc. 58(4) Where, under this section, a demand is made of an owner, contractor, sub-contractor, mortgagee or unpaid vendor, or an agent of any of them, for a copy of any document or a statement of any accounts, he may require the person making the demand to pay the reasonable costs of making the copies or of preparing the statement before producing the copy of the document or the statement. Failure to respond to demand 58(5) Where, under this section, a demand is made of an owner, contractor, sub-contractor, mortgagee or unpaid vendor, or an agent of any of them, and the person to whom the demand is made (a) does not, within a reasonable time after receiving the demand and after payment of any reasonable costs required to be paid under subsection (4), if any, produce or deliver the copy of the document or the statement or information demanded; or (b) knowingly, falsely states the terms of any documents; or (c) knowingly gives any false statement or false information; to the person making the demand and the person making the demand sustains any loss by reason of the failure, false statement, or false information, the person to whom the demand is made is liable to the person making the demand for the amount of the loss in any action therefor, or in any action under this Act for the realization of the lien. Order to produce 58(6) On application at any time before or after an action is commenced for the realization of a lien, a judge may make an order requiring the owner or the contractor, or a mortgagee, or an unpaid vendor, or a sub-contractor or the agent of any of them, as the case may be, to produce to any person who may be entitled to a lien in respect of work done or to be done, or services provided or to be provided, or materials supplied or to be supplied in the performance of a contract or sub-contract in respect of land, and permit that person to inspect the contract or sub-contract or the mortgage or agreement for sale of the land, or the accounts, or the holdback account pass book, or any other relevant documents and the judge may make such order as to costs of the application and order as the judge deems just. Giving certificate of substantial performance 59(1) Except as provided in subsection (3), within 10 days after the date that a certificate of substantial performance of a contract is given to the owner, the owner shall give a true copy of the certificate to all persons doing work, providing services or supplying materials in the performance of the contract who have requested the owner, in writing by personal service with a return address, to give them a copy of the certificate. False certificate of substantial performance 59(2) Where a person is entitled to be given a copy of a certificate of substantial performance under subsection (1), if the owner fails to give a copy of the certificate within the time therein set out or gives a copy of a certificate of substantial performance which the owner knows to be false, and the person requesting the certificate sustains loss because of the failure or because of the false certificate, the owner is liable to the person requesting the certificate for the amount of the loss in an action therefor or in an action under this Act for the realization of a lien. Exceptions to subsection (1) 59(3) Subsection (1) does not apply to an individual who orders work, services or materials for construction of a structure or for improving land owned and occupied by the individual or their spouse or common-law partner for single family residential purposes if the contract price for the work, services and materials does not exceed the amount prescribed in the regulations for the purpose of this section or, where there is no specific contract price, where the value of the work, services and materials does not exceed the amount prescribed in the regulations for the purpose of this section. S.M. 2002, c. 24, s. 5 .
