Statutory lien of tradespeople and contractors
The purpose of the statutory lien
The statutory lien of tradespeople and contractors (art. 837 ff. CC) secures payment for construction, alteration or demolition work carried out on a plot of land. It protects the business that supplied materials or labour against the risk of non-payment, by granting it a lien on the property itself, regardless of the client's solvency.
Conditions for registration
Registration in the land registry requires that the work has actually been carried out and that the claim is not manifestly unfounded. It can be requested even without the property owner's consent, which distinguishes it from a conventional mortgage.
The registration deadline
Art. 839 para. 2 CC sets a strict deadline: registration must be requested at the latest within four months of completion of the work. After this period, the right to the statutory lien lapses, even though the claim for the work itself remains under the ordinary limitation rules.
Effect against other creditors
Once registered, the statutory lien in principle takes priority over other liens registered later, making it a particularly effective security tool for construction businesses facing the risk of a client's insolvency.
Frequently asked questions
Within what deadline must I request registration of the statutory lien?
At the latest four months after completion of the work (art. 839 para. 2 CC). This deadline is mandatory, and missing it means losing the right to this security.
Does the property owner need to consent?
No, registration can be requested even without the owner's consent, provided the work was carried out and the claim is sufficiently substantiated.
Does the statutory lien apply to all types of work?
It applies to construction, alteration or demolition work on a building or other structure on a plot of land, carried out by tradespeople or contractors within the meaning of art. 837 CC.
What happens if the four-month deadline is missed?
The right to the statutory lien lapses permanently, but the claim for unpaid work remains and can be pursued through ordinary means (debt collection, payment action).