What is a Notice of Lien?
A notice of lien is used to inform the owner and any other interested parties (such as lien holders) that the storage facility is claiming a lien against the stored goods. The notice includes details on the location of the stored goods, the amount and frequency of storage charges, and the total that has already accrued.
Why should a Notice of Lien be used?
In all provinces, storage facilities are required to issue a notice of lien if the goods are deposited into storage by someone other than the owner or an authorized agent for the owner.
A common example of such would be when a vehicle is towed to a storage yard under impound. Whoever is now storing the vehicle would be required to issue a notice of lien to all registered owners of the vehicle along with anyone with a lien registered against it.
When should a Notice of Lien be issued?
The notice must be issued within the first 60 days of the stored items being received, EXCEPT for vehicles registered in Ontario, where the notice must be issued within 14 days of the vehicle being received. Failing to issue the notice within the required timeframe will result in the storage charges being capped to a maximum of said time frame. This means that even if goods are stored for years if the storage facility cannot show that a notice of lien was properly issued when one was required they will only be entitled to 60 days of storage (or 14 days for vehicles in Ontario).
How should a Notice of Lien be issued?
A notice of lien has to be issued per the regulation of each province’s Act, being either hand delivery to the recipient or prepaid registered mail.
Registered mail is a trackable form of delivery that allows for the sender to see once the letter has been received and signed for. Registered letters have to be taken to the post office to be processed by Canada Post. See our registered mail services for hassle-free delivery with just a few clicks of the mouse.
Hand delivery is relatively self-explanatory. It involves the landlord or their authorized agent physically delivering the letter to the rental suite and/or any other delivery addresses for the tenant. If using this option, you will likely need to swear an affidavit of service in front of a notary or commissioner for taking oaths.
Where should a Notice of Lien be issued?
A notice of lien should be issued to all known and provided addresses for the owner(s) and other interested parties. For the owner(s) this would typically be the address on any ownership or registration documents, and for interested parties like lien holders, the address shown on their lien. In addition, storers may use Google to try to find other valid addresses to show they have done their due diligence to make sure the notice makes its way to all recipients.
Where can you find out more?
Further details on notices of lien can be found by clicking the respective act of your province below:
Alberta’s Warehousemen’s Lien Act
British Columbia’s Warehouse Lien Act
Saskatchewan’s Commercial Liens Act
Manitoba’s Warehousemen’s Lien Act
Ontario’s Repair and Storage Liens Act
Newfoundland’s Warehouser’s Lien Act
New Brunswick’s Storer’s Lien Act
Nova Scotia’s Storage Warehouse Keepers Act
Prince Edward Island’s Warehousemen’s Lien Act
Northwest Territories’ Warehouse Keepers Lien Act
