Construction professionals benefit from strong legal protection that few people are aware of: the legal construction hypothec. This provision, set out in article 2726 of the Civil Code of Quebec, protects workers and professionals. It ensures they are paid for their services and the materials supplied in a real estate project.

Definition

The legal construction hypothec is a right automatically granted to certain individuals as soon as they participate in the construction or renovation of a building. This hypothec arises by operation of law, without needing to be registered in the land register beforehand.

Who are the beneficiaries?

The Civil Code identifies six beneficiaries: architects, engineers, contractors, subcontractors, material suppliers, and even workers. In short, anyone who contributed to the construction or renovation of a building—through services or materials—is protected by this legal hypothec.

What is its purpose?

The legal construction hypothec allows beneficiaries to secure their claim directly against the building in question. In other words, if an owner refuses or delays payment, the building itself can be seized. It can also be sold to repay those who worked on it or supplied materials.

However, the Civil Code of Quebec strictly regulates its duration and conditions. In fact, the legal hypothec lasts for 30 days after the end of the work, even without registration. To maintain it beyond that, the creditor must register a notice in the land register indicating the property concerned and the amount owed. This notice must also be served by a bailiff on the owner (art. 2727 para. 1 and 2). Moreover, the hypothec is automatically extinguished six months after the completion of the work, unless the creditor initiates legal action against the owner or registers a prior notice of exercise of a hypothecary right (art. 2727 para. 3), in which case the protection remains in force.

It is important to note that the hypothec only burdens the property concerned by the work and no other property.

Conclusion

In conclusion, the legal construction hypothec is an essential protection mechanism for those working in the construction field. It guarantees them payment, even if the building owner tries to avoid paying.

For property owners, it remains crucial to comply with the rules and deadlines in order to avoid the seizure of their building. In the broader context of real estate law, our firm supports property owners, contractors, and other stakeholders in managing their rights and obligations. As well as in the resolution of disputes related to the legal construction hypothec.