British Columbia has brought into effect the new Commercial Liens Act ("the Act"). It is designed to consolidate a number of outdated pieces of legislation and common law principles into a single statutory framework to provide a one-stop shop for service providers who rely on commercial liens.

If you operated under or were affected by the Livestock Lien Act, Repairers Lien Act, Tugboat Worker Lien Act, Warehouse Lien Act, Woodworker Lien Act, all of these Acts have been repealed. The legislation also abolishes common law possessory liens.

Liens under the Builders Lien Act and the Forestry Service Providers Protection Act are unaffected and will continue to be governed by these statutes.

Who does the Commercial Liens Act apply to?

The new Act came into force on June 30, 2025. It applies to:

  • service providers who store, transport, carry, tow, or salvage goods — such as warehousers and tugboat operators;
  • service providers such as mechanics who supply materials or labour to restore, improve or maintain the condition or properties of goods;
  • individuals whose goods are subject to a commercial lien through these services.

What is a commercial lien?

A commercial lien is a legal claim on serviced goods that allows service providers to secure payment of a debt or the performance of an obligation.

A service provider may retain possession of the serviced goods until the debt is paid, or the obligation is fulfilled. For example, a warehouser who stores goods for a client may retain possession of the goods until the client pays the required storage fees.

The Act establishes that a person has a commercial lien on goods for services provided, if, at the time of request or during service, the requesting party owns or holds a legal interest in the goods, is in possession of the goods, or is legally entitled to possess the goods.

Key changes

Single statutory framework: The Act unifies the law under a single comprehensive framework for service providers providing a clear set of commercial lien rules for any type of service provider who repairs, stores or transports goods. This comprehensive framework ensures consistent protection for both service providers and individuals whose goods are subject to a commercial lien.

Possession is no longer a requirement: The lien attaches to the goods when the services begin. The lienholder now does not have to have possession of the goods if there is written authorization for the services or an acknowledgment of the obligation to pay. This change offers greater protection for service providers, as it allows liens to be registered on large items that are difficult to move or store.

Clear rules regarding the amount secured: The Act provides that the amount secured by a commercial lien is either the agreed upon price for the services or, if no price was agreed upon, the market value of the services provided.

Practical framework for sale provisions: The Act has created a uniform and practical framework for sale provisions with the adoption of the sale and notice procedures outlined in the Personal Property Security Act.

Registration of non-serial numbered goods: Under the old regime, only serial numbered goods, such as motor vehicles and boats, were eligible for registration under the Personal Property Security Act. The Act permits registration of non-serial numbered goods provided that the financing statement identifies the owner of the goods. If the person who requested the services in relation to the goods is not the owner, the statement must identify the person who requested the services. This offers greater flexibility, as service providers may register non-serial numbered goods without having to maintain possession to preserve their commercial lien.

New responsibilities of lienholders: The Act does place greater responsibilities on lienholders who are in possession of goods. They are required to take reasonable care of goods while they remain in their possession. This obligation ensures that goods subject to a commercial lien are safeguarded and not misused.

Our Commercial Litigation Group at Gowling WLG remains committed to providing you with strategic guidance and updates on these developments. Please contact us for tailored advice on navigating the Commercial Liens Act and any further details on how these changes may affect your business operations.