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Construction lien and notice

The failure to notify the landlord in writing of the termination of the contract cannot be compensated by the landlord's knowledge of it.

«An anti-privilege card, just in time!»

Lucky are the entrepreneurs or subcontractors whom the Code civil du Québec grants a right to the added value they bring to a property. People working in construction or renovation continue to be privileged compared to those who provide services or sell goods.

Thus, a trustee in bankruptcy of an electrical contractor requests the sale of a property under court control. The trustee admits that the electrical contractor never notified the owner of the property in writing and that no attempt was made to locate the true owner. However, the trustee argues that he did not have to do so even if the contract was signed with a general contractor, since the main shareholder and director of the latter, who participated in the negotiations, was also the sole owner of the property.

The Superior Court* concludes that "...the absence of written notification cannot be compensated by the owner's knowledge of the existence of the contract." The electrical contractor only had to notify the contract in writing and due to this omission, the court dismisses the trustee's request.

Prevent your guarantees from flying away and establish the rules clearly from the beginning. Notarial imagination can bring a certain method complementary to the most effective in restraining the publication of legal mortgages. Find out more!

Have the right card, especially do not start a project without it and you will certainly accumulate points.

*CS 500-05-013997-968, 1996-10-04

François Forget, notary and legal advisor as well as the entire Notaire-Direct team, are at your service to ensure the preparation of your legal documents and answer all your legal questions.
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