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Commercial Liens Act
As of June 30, 2025, British Columbia introduced the Commercial Liens Act (CLA) and its regulations, revolutionizing lien law by replacing fragmented statutes with a single, streamlined system.
What’s Changing—and Why It Matters
Previously, lien rights in BC were scattered across multiple statutes like the Repairers Lien Act, Warehouse Lien Act, Woodworker Lien Act, and anchored in common‑law principles. This patchwork created inconsistent rights and obligations depending on the service provider’s industry. The new unified framework established by the CLA aligns BC’s commercial lien legislation with modern commercial practices by repealing 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.
The CLA brings substantial change to the law governing liens intending to reduce the risks and costs for service providers who provide labour or materials for (i) restoring, improving, or maintaining the condition or properties of goods, (ii) storing goods, (iii) transporting, carrying or towing goods, or (iv) salvaging goods.
Key Features of the New CLA Regime
1. Unified Lien Rights
All service providers, from repairers and storers to carriers and salvagers, can now rely on a single, coherent lien type covering labour or services enhancing goods.
2. Non‑Possessory Lien Attachment
As long as there is written service authorization or acknowledgment of payment obligation, liens under the CLA attach the moment services begin and remain enforceable even if the provider doesn’t have physical possession of the goods. This is a practical change that overcomes previous challenges of service providers maintaining possession of goods while the owners require possession of goods for business activities.
3. Perfection by Registration or Possession
Under the old regime, perfection of a secured party’s security interest required possession except for serial number goods, such as motor vehicles, which could be perfected by registering a financing statement in the Personal Property Registry (PPR). In addition to perfection by possession, the CLA permits perfection of all commercial liens by registering a financing statement in the PPR. For example, repairers benefit from the ability to perfect liens via registration on any serviced item—even pieces without serial numbers—without needing initial possession. This is a practical change that offers greater flexibility for service providers.
4. Modernized & Uniform Enforcement
Under the former regime, the method of sale for a liened good varied depending on the type of lien. The CLA adopts the Personal Property Security Act (PPSA) procedures, allowing lienholders to sell goods through private sale, auction, tender, or lease, provided proper notice is given. While the CLA allows lien enforcement outside court, judicial oversight persists. Stakeholders can seek court intervention to challenge the validity or amount of a lien. Courts may order lienholders to compensate if liens are found invalid. These changes create consistency and improve clarity with regards to commercial risk management.
5. New Duties & Formal Notices
Lienholders now face explicit obligations for care of goods, plus structured requirements for issuing notices at registration and prior to sales, enhancing fairness and process transparency.
Conclusion
BC’s Commercial Liens Act markedly simplifies lien law: unifying multiple statutes into one, permitting non-possessory liens, broadening registration options, aligning enforcement with PPSA procedures, and imposing modern duties and notice requirements. These changes create a more predictable, flexible, and commercially effective environment for securing payment across various service industries. If you’re in sectors like repair, storage, transportation, or salvage, this overhaul has direct implications. Contact Velletta Pedersen Christie to discuss system updates, staff training, and documentation practices now.
A Cautionary Note
This article provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.