Legal hypothec in favour of the creditor holding a judgment

Paragraph 4 of article 2724 of the Civil Code of Québec provides for the possibility of publishing a legal hypothec on the debtor’s immovable once a judgment has been rendered.

This is therefore a possible method of enforcing judgments, as well as a conservatory measure in order to guarantee, in a way, the amount of the judgment.

The legal hypothec may give the creditor an opening to a hypothecary recourse against the debtor or it may simply be published as a conservatory measure.

For example, it would be prudent for a creditor who holds a judgment to publish the legal hypothec and enforce the judgment through the various seizures provided for by the Law, through a bailiff.

If the creditor is unable to enforce the judgment, he or she may, under certain conditions, take legal action by way of hypothec. In order to do so, the claim established by the judgment must be greater than 20 000$, if it is against a principal residence.

In the event that the claim is less than 20 000.00$, the legal hypothec will only be published as a conservatory measure on a principal residence and will not give effect to a hypothecary recourse.

For other cases, the recourse will be the same as for other types of hypothecs.

Finally, it should be noted that a legal hypothec following a judgment will have no value if the debtor places himself under the protection of the Bankruptcy and Insolvency Act.

For more information, do not hesitate to consult us.

Vanessa Low-Ken
Legal technician
Charland Avocat Inc.
Centropolis Laval
500-3055, boul. Saint-Martin Ouest
Laval (Québec) H7T 0J3
Phone: (450) 934-8700
Fax: (450) 934-8748