British Columbia’s commercial lien regime is set for a significant transformation. The Commercial Liens Act (the “CLA”) and Commercial Liens Regulation will come into force on June 30, 2025, following the deposit of the supporting regulations on May 12, 2025.

Liens are a key tool for service providers to secure payment for the work they perform. They generally grant businesses, such as repairers, warehousers, and common carriers, a legal right to retain a customer’s property as security for payment or performance of an obligation.

The CLA replaces a patchwork of outdated statutes and common law principles with a unified, modern framework. It repeals the Repairers Lien Act, Warehouse Lien Act, Livestock Lien Act, Tugboat Worker Lien Act, Woodworker Lien Act, and common law possessory liens that secure payment for services. Liens under the Builders Lien Act and the Forestry Service Providers Protection Act remain unaffected.

Key Changes

  • Unified Lien Right: The CLA creates a single commercial lien on goods for services performed in relation to those goods, securing either the agreed price or the market value of the services.
  • Attachment Without Possession: The lien will attach immediately upon commencement of services. It can be enforced even if the goods are no longer in the service provider’s possession, so long as there is written authorization for the services or an acknowledgement of the obligation to pay. Notably, an initial period of possession will no longer be required.
  • Perfection by Registration: Under the current regime, only liens on serial number goods, such as motor vehicles, can be registered in the Personal Property Registry (“PPR”), with all others requiring possession to maintain the lien. The CLA introduces a significant shift by allowing all commercial liens to be perfected either through possession or registration in the PPR, offering greater flexibility and reducing the need for service providers to hold onto goods solely to preserve their lien rights.
  • Modernized Sale Provisions: The CLA streamlines and modernizes the process for enforcing liens by adopting sale and notice procedures aligned with the Personal Property Security Act. Liened goods may now be sold by private or public sale (including by auction or tender), in whole or in parts, or leased with consent. The outdated approach of varying sale methods based on the type of lien has been eliminated, creating a more consistent and commercially practical framework.
  • New Duties and Notices: The CLA imposes new responsibilities on lienholders for the care of goods and formalizes notice requirements related to registration and sale.

The new framework offers greater flexibility and clarity for service providers while aligning BC’s commercial lien laws with modern commercial practices.

Should you have questions about how the CLA may impact your business or current practices or require any assistance, please do not hesitate to contact a member of Miller Thomson’s Commercial Litigation Group.