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A legal hypothec in favour of the persons having taken part in the construction or renovation of an immovable (hereinafter referred to as the “legal hypothec of construction”) is the legal action that allows the persons who have participated in the construction or renovation of a building to take this immovable as a guarantee of payment.
The following persons can benefit from a legal hypothec of construction:
The following products and services are covered by a legal hypothec of construction:
The legal hypothec of construction exists automatically as soon as the services or the work covered by this hypothec are performed. However, the legal hypothec expires rather quickly. In order to keep their right to a legal hypothec, persons who have participated in the construction or renovation of a building must act proactively to meet the formalities required by law.
In addition, the formalities required to maintain their right to a legal hypothec of construction are as follows:
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Who? |
What? (formalities completed by the platform) |
When? |
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The persons having taken part in the construction |
That have not contracted directly with the owner. |
Notice of a Contract |
Before the work on the building has begun. |
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The persons who have contracted directly with the owner. |
Registration of a Legal Hypothec of Construction |
Within thirty (30) days after the date of completion of the work. |
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The persons who have not contracted directly with the owner, but have given the owner a notice of their contract. |
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A person who is a worker. |
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Who has duly registered a legal hypothec of construction in Quebec’s Land Registry. |
Prior Notice to Exercise a Legal Hypothecary Right |
Within six (6) months after the date the work was completed. |
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The persons who have duly served and published the prior notice to exercise a legal hypothecary right. |
Voluntary Surrender of an Immovable |
A period of sixty (60) days after registration of the prior notice to exercise a legal hypothecary right. |
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Forced Surrender of an Immovable |
At the expiration of the sixty-day period after registration of the prior notice to exercise a legal hypothecary right. |
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OF A LEGAL HYPOTHEC OF CONSTRUCTION
Even if the hypothecary recourse is initiated, the debtor or any other interested party may defeat exercise of the right by paying the creditor the amount owing to him and by paying the costs incurred before the prior notice expires.
After entering some information into Hypotek’s Web platform, its algorithms and our professionals will determine your eligibility for a legal hypothec of construction and schedule the formalities that need to be completed within the applicable time limits.
Once your file has been submitted, Hypotek will take care of the rest. All that is left for you to do is wait for the debtor to send you the payment related to your claim.
By using Hypotek’s legal software, you’ll have access to a large variety of customizable legal documents at no additional cost.
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