General information about Alberta and City of Calgary rules, written in plain language and linked to the sources. It isn't legal advice. Laws change and details matter, so check the source or talk to a lawyer about your situation.
A builders' lien is one of the few ways a homeowner can end up paying twice for the same job. You pay your roofer in full, the roofer doesn't pay the shingle supplier, and the supplier registers a claim against your house.
Alberta's lien law is the Prompt Payment and Construction Lien Act. The old Builders' Lien Act was amended and renamed, and the new rules applied to contracts from August 29, 2022. This guide explains the parts a homeowner hiring a roofer or siding contractor needs to know.
What a builders' lien is, and who can file one
Under section 6 of the Act, a person who does work on an improvement, or supplies material for it, for an owner, a contractor or a subcontractor, has a lien for whatever they're still owed. The lien is on the owner's interest in the land. An improvement is basically anything built or placed on the land, so a new roof or new siding counts.
The key words are 'or a subcontractor'. You don't need a contract with someone for them to have lien rights against your home. On a typical roofing job, that can include:
- Your roofing contractor.
- A subcontracted crew that installed the roof.
- The supplier that delivered the shingles, underlayment and flashing.
- A company that rented equipment to the contractor for the job, while that equipment was on or near the site.
The timelines: 60 days to register, 180 days to act
A lien doesn't last forever. The Act sets tight deadlines on the person claiming it.
| Step | Deadline | Section |
|---|---|---|
| Register the lien at Land Titles | Within 60 days after the last materials were supplied, or the services were completed, or the contract was abandoned. Concrete work gets 90 days | s. 41 |
| Start a court action and register a certificate of lis pendens (a notice that a lawsuit about the land is under way) | Within 180 days of registering the lien, or the lien ends | s. 43 |
| If you serve a written notice to start an action | The lienholder has 30 days to start the action and register the certificate, or the lien ends | s. 45 |
The 10% holdback: your main protection
Section 18 says that an owner who is liable on a contract under which a lien may arise must, when paying, keep back 10% of the value of the work actually done and materials actually supplied. You keep it for 60 days (90 days for concrete work) from the date of completion, or from the date of a certificate of substantial performance if one is issued. That's a document the contractor can issue when, in its opinion, the contract is substantially performed. Section 20 says it must be posted on the job site or provided electronically within 3 days of issue.
The holdback matters because of section 25. An owner isn't liable under the Act for more than the lien fund. Roughly, that's the required holdback plus any money you still owe under the contract that you hadn't paid in good faith before a lien was registered. Once 60 days pass after completion and no lien has been registered, section 27 lets you pay out the holdback and be discharged from liens on it.
- Put the holdback in the contract so everyone agrees in advance. For example: 10% held for 60 days after completion, released once a title search shows no liens.
- At each payment, keep back 10% of the value of the work done to that point.
- Write down the completion date, or keep the certificate of substantial performance if one is issued.
- On day 61 or later, search your title. If it's clear, release the holdback.
- If a lien appears, don't pay the holdback to the contractor. Get legal advice first.
Other ways to protect yourself
The holdback is the legal backbone. A few habits add a paper trail around it.
- Search your title. A land title shows the owner, mortgages, caveats and registered builders' liens. You can order one online through SPIN2 or the Alberta Registry for Land Online (ARLO), or through a registry agent. You'll need the legal description, the LINC number or the title number, which are on your property tax or purchase documents.
- Ask for a statutory declaration. Many owners ask the contractor for a statutory declaration before final payment. That's a written statement sworn in front of a commissioner confirming that subcontractors, suppliers and workers on the job have been paid. It's something you can ask for in the contract, and a sworn statement is a serious thing for the person who signs it.
- Ask who's supplying and subcontracting. Knowing the supplier's name tells you whose unpaid invoice could turn into a lien.
- Use a traceable payment method and keep every invoice and receipt.
If a lien is registered on your title
Don't panic, and don't ignore it. A registered lien is a claim, not a judgment. The Act gives owners several tools, but they involve court steps, so this is the point to speak to a lawyer.
- Get a copy of your title and the statement of lien. Note who registered it, how much they claim and the date.
- Stop payments to the contractor on this job, and keep the holdback.
- Contact your contractor in writing. Often the fastest fix is for the contractor to pay its supplier and have the lien discharged.
- Check the deadlines. A lien registered more than 60 days after the last work or materials may be out of time. A lien with no court action and certificate of lis pendens within 180 days ends.
- Ask a lawyer about serving a notice to start an action (s. 45), which gives the lienholder 30 days to act or lose the lien.
- Ask about removing the lien from your title by paying money into court or posting security (s. 48). The money stands in place of your land while the dispute is decided, which can matter if you're selling or refinancing.
Can a subcontractor put a lien on my house if I paid my contractor?
Yes. Under Alberta's Prompt Payment and Construction Lien Act, anyone who does work or supplies materials for your project, including for a subcontractor, can have a lien for what they're owed. Keeping the 10% holdback for 60 days after completion is what limits your exposure.
How long does a contractor have to file a lien in Alberta?
For most work, 60 days after the last materials were supplied or the services were completed or abandoned, under section 41. Concrete work gets 90 days. Older contracts can be under different rules, so check the Act or speak to a lawyer if your contract predates August 29, 2022.
Do I have to hold back 10% on a home renovation?
Section 18 requires an owner who is liable on a contract under which a lien may arise to retain 10% of the value of work done and materials supplied for 60 days. It doesn't set out a separate rule for home renovations. Agree on it in the contract so it isn't a surprise.
How do I check if there's a lien on my property?
Order a copy of your land title through SPIN2, the Alberta Registry for Land Online, or a registry agent. Registered builders' liens show on the title.
What happens to a lien if nobody sues?
Under section 43, a registered lien ends unless, within 180 days of registration, the lienholder starts a court action and registers a certificate of lis pendens at Land Titles.
Where the facts on this page come from. If a source has changed since we last checked, tell us and we'll fix the page.
- Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4 (ss. 1, 2, 6, 18 to 20, 25, 27, 40, 41, 43, 45, 48, 74) · Alberta King's Printer
- Prompt payment rules for construction industry · Government of Alberta
- Find land titles, documents or plans · Government of Alberta