Filing a builder’s lien in Manitoba strictly requires registering your claim at the Teranet Manitoba Land Titles Office within 60 days of completing the work or supplying the materials. Missing this 60-day deadline generally invalidates your legal right to claim a lien against the property.
Working in the construction industry in Winnipeg can be highly rewarding, but dealing with unpaid invoices is a major source of stress. Whether you are a general contractor building a home in Sage Creek or a local plumber fixing pipes in Transcona, you deserve to be paid for your labour and materials. 💸
In Manitoba, The Builders’ Liens Act provides a powerful legal tool to help construction professionals secure payment. A builder’s lien is a legal claim placed directly against the title of the property where you performed the work. This essentially freezes the property, making it extremely difficult for the owner to sell or refinance until your debt is settled.
However, the rules surrounding liens are incredibly strict and time-sensitive. If you wait too long hoping a client will pay, you may lose your right to file. We will guide you through the process of protecting your hard-earned money and filing a valid lien in the province.
Step-by-Step Process in Manitoba
Time is your biggest enemy when it comes to construction disputes. To successfully file a builder’s lien against a property in Manitoba, you must follow these specific steps without delay. 📋
Step 1: Calculate Your 60-Day Deadline
You have exactly 60 days to register your lien. This countdown usually begins on the day the contract is completely finished, abandoned, or when the specific materials were last supplied to the site. 📅
Do not wait for a 30-day invoice to become overdue before you start thinking about a lien. If the 60th day falls on a weekend or a statutory holiday, the deadline is generally extended to the next business day, but it is always safer to file early.
Step 2: Draft the Claim for Lien Document
You must complete a specific legal form to register your claim. You will need the precise legal description of the property (not just the civic street address), your business details, the amount owed, and a brief description of the work performed. 📄
Because a simple typo on the legal land description can invalidate the entire lien, it is highly recommended to have a real estate lawyer or a commercial litigation law firm draft this document for you.
Step 3: Register at the Land Titles Office
Once the paperwork is correctly prepared, it must be officially registered at the Teranet Manitoba Land Titles Office. In Winnipeg, this is handled digitally or through the provincial registry system.
Once registered, the lien appears on the property’s public title. The property owner will quickly realize they have a lien on their home, which often prompts them to settle the outstanding invoice immediately to clear their title.
Step 4: Enforce the Lien at the Court of King’s Bench
Registering the lien is only the first half of the battle. To keep the lien alive, you must file a formal legal action (a Statement of Claim) at the Court of King’s Bench and register a Pending Litigation Order within two years of filing the lien.
If you fail to start this legal action within the two-year window, the lien will expire and can be removed from the property title by the owner, leaving you without your secured claim.
How Much Does it Cost in Winnipeg?
Securing your payment requires some upfront costs, but it is often worth the investment to recover a large unpaid invoice. 💰
- Land Titles Registration Fee: Registering the document at the Teranet Manitoba Land Titles Office typically costs $137 CAD for electronic registration or $144 CAD for paper registration.
- Title Search: Pulling the official title to get the correct legal land description costs exactly $33 CAD.
- Law Firm Fees: Hiring a local lawyer to correctly draft and file the lien generally ranges from $500 to $1,500 CAD, depending on the complexity of the contract.
- Court Filing Fee: If you must escalate to a lawsuit, filing the claim at the Court of King’s Bench costs approximately $250 CAD.
How Long Does the Process Take?
As mentioned, you must file within 60 days. Once you hand the information to your lawyer, they can usually pull the title and register the lien within 2 to 4 business days. ⏱
After the lien is placed, the timeline for getting paid varies. Some property owners pay within a week to clear their title. If the dispute is complex and requires a full civil trial at the Court of King’s Bench, reaching a final judgment can take 1 to 3 years.
Frequently Asked Questions (FAQ)
Do I need a written contract to file a lien?
While a signed written contract makes your case much stronger, it is not strictly required. Verbal agreements are legally binding in Manitoba, provided you have evidence like emails, text messages, or material receipts to prove the work was requested and completed.
Can a subcontractor file a lien if the general contractor didn’t pay them?
Yes. Subcontractors and material suppliers have the legal right to file a lien directly against the property title, even if their contract was with the general contractor and not the actual homeowner.
What is a statutory holdback?
In Manitoba, property owners and contractors are required to hold back 7.5% of the payment for 60 days after the project is completed. This holdback fund is specifically designed to pay subcontractors if the main contractor fails to pay them.
Can the property owner remove the lien?
Yes, an owner can remove the lien by paying the disputed amount directly into the court in trust (paying money into court). This clears their property title while the dispute over the funds is resolved legally.
Leave a Reply