Lawyers in legal hypothecs
We have the experience and knowledge required to advise you on legal construction hypothec.
Construction generally involves significant costs for building, renovating or improving infrastructure, whether for purchasing materials or hiring labor.
To protect contractors against the risk of not being paid by their clients, the law provides a security measure called legal construction hypothec.
The legal construction hypothec is granted to the beneficiary as long as he has a debt towards the owner of a building for the following works:
- Construction
- Building renovation
- Enlargement
- Major repairs
- Supply of materials to carry out this work
Work not covered by a legal construction hypothec is:
- soil decontamination
- Simple maintenance work
Buildings belonging to Hydro-Québec, the public domain, municipalities, prisons, metro stations, schools, CEGEPs and libraries are excluded from the application of the legal construction hypothec.
Consult a legal mortgage lawyer today.
Beneficiaries of the legal mortgage
- The architects
- The engineers
- Material suppliers
- Workers
- The contractor or sub-contractor (sub-contractor)
Each of the entrepreneurs and professionals mentioned above must be properly registered with their professional order or have the required authorizations to be able to benefit from the right to a legal hypothec.
As for the supplier of materials, his right to this hypothec will only be granted if the materials are used in the construction and integrated into the building.
You have 30 days from the end of the renovation/construction work to register a legal construction hypothec.
The stages of the legal mortgage
The notice of termination of the contract
If you are a worker who has not contracted directly with the owner, it is essential to denounce your contract in writing in order to benefit from the legal hypothec in your favour. This denunciation must be made before the start of the work and must be accompanied by proof of service.
The notice of exercise of a hypothecary recourse
The next step is to give notice of the exercise of hypothecary recourse. This notice is essential to exercise hypothecary recourses and must be published within six (6) months following the end of the work, failing which the legal hypothec will be extinguished.
The 4 remedies for all creditors of the legal hypothec:
- Possession
- Taking in payment
- Sale by creditor
- Sale under judicial control
Cancellation of a legal mortgage
If one of the conditions required for the establishment of a legal mortgage is not met, it is possible to request its cancellation.
For example, if a contractor carries out work without a valid permit and then registers a legal hypothec, the owner can request that it be struck off. Likewise, if the permit was not valid at the time of registration of the mortgage.
Moreover, when a legal mortgage is registered and valid, it is always possible to negotiate its cancellation amicably. We can agree on a staggered payment plan with the creditor, or even pay part or all of the debt in exchange for the cancellation of the legal hypothec.
Finally, a legal mortgage registered more than 30 days after the end of the work is invalid. It is also important to note that fees are applicable for the cancellation of a right such as the legal hypothec.