The Canadian Federal Budget of 2022 and Real Estate

The latest budget proposes a number of programs intended to affect the price of residential real estate. The link below is to a government of Canada information page about the proposed legislation points. To be clear, it is our current understanding from the draft wording that none of these proposals will affect commercial real estate as they are all targeting housing affordability issues.

Chapter 1: Making Housing More Affordable | Budget 2022

Revised Lien Act Coming to BC, Canada

On March 31, 2022, British Columbia passed new legislation that will reform and consolidate the law on commercial liens in British Columbia. Bill 11 – 2022: Commercial Liens Act (the “CLA”) will modernize this area of the law and establish a framework for commercial liens that aims to be more consistent with other jurisdictions in Canada. While the CLA has received royal assent, the act will be brought into force by regulation at a yet to be determined date (likely 2023 at the earliest).

Generally, liens grant service providers (such as repairers, warehousers and common carriers) a legal right to retain a customer’s property to secure payment or performance of an obligation.

The current commercial lien regime in British Columbia is governed by a collection of outdated legislation and common law principles that are criticized as being difficult to follow, inconsistent, inflexible and inefficient. The CLA will repeal the current legislation and common law liens and replace them with a single comprehensive framework that is integrated with the Personal Property Security Act (the “PPSA”). In particular, the CLA will repeal and replace the Repairers Lien ActWarehouse Lien ActLivestock Lien ActTugboat Worker Lien ActWoodworker Lien Act, and the common law possessory liens which establish a lien for services. The CLA will not affect liens under the Builders Lien Act, which is most commonly used in commercial real estate and the Forestry Service Providers Protection Act.