A claim of lien does not prevent the owner from dealing with the land

The filing of a claim of lien against title to land does not prevent the owner from transferring the land, although the lien will remain on title and the transferee will take the land subject to the lien. In Langford et al. v. Sengara Enterprises Ltd. and Mills (1978), 6 B.C.L.R. 372 (B.C. Co. Ct) a defaulting owner sold the land to the defendant who had contributed to the improvement, and the court found that the defendant took the land subject to liens on the property:
 
With respect to liens properly filed, Sengara is deemed to have notice. He would therefore, as assignee of Mills' interest, acquire the same title and encumbrances Mills had on making the assignment.
(Langford et al. v. Sengara Enterprises Ltd. and Mills (1978), 6 B.C.L.R. 372 at para. 12 (B.C. Co. Ct))
 
However, having a lien on title may in practice prevent dealing with the land because a buyer may not be willing to purchase land with a lien on it, or a bank may not be willing to grant a mortgage if there is a lien on title, etc. 

 

 

 

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