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Samuel Michaels

Founder & Lawyer, SM Legal


A lien should not be made in bad faith. There should be a genuine reason for the registration of the lien, and that reason should be in itself reasonable (ie. the average person would consider the action reasonable). For example, registering a lien against a stranger would be bad faith. Registering a lien to protect a security described in a contract, where the contract includes a clause regarding lien registration, would be seen as a good faith act.


Answered: 2 months ago