What is the Commercial Lien Act?

The Commercial Liens Act (“CLA”) came into force on June 30, 2025, replacing the Repairers Lien Act, the Livestock Lien Act, the Tugboat Worker Lien Act, the Warehouse Lien Act, and the Woodworker Lien Act.

The CLA applies to service providers who:

• those, such as mechanics, who supply materials and/or labour to improve or maintain the condition of goods;
• those who store goods;
• those who transport, carry or tow goods; and
• those who salvage goods.

The definition of ‘goods’ to which the CLA may apply is diverse and includes ‘goods’ ranging from commercial vehicles to cattle.

On a basic level, the CLA provides a mechanism for service providers to secure payment either through retaining possession of the goods or through registration of a financing statement against the goods in BC’s personal property registry.

If the payment obligation remains outstanding, the CLA provides a framework for the service provider to seize (if the service provider hasn’t kept possession of the goods) and sell the goods in a public or private sale to recoup the outstanding debt as well as any costs incurred by the service provider to sell the goods. 

If used appropriately, the CLA can be a useful instrument for service providers to ensure the prompt payment of their debts from their customers.

Should you have any questions about whether the CLA may be used by you or your business please feel free to reach out to Alex Schreiner for an initial consultation.