Another legal mortgage has been filed against Eureka93 in the last hours coming from G.C.M Consultants, an engineering firm with offices in Montreal.
The registered amount of the legal mortgage under construction is $329,610. This mortgage has been filed for services provide at 211 highway 301 in Litchfield and for LiveWell, now known as Eureka93 since April 2019. The legal mortgage was sent to Livewell Foods ‘s Quebec location at 179 # 300 on the promenade du Portage in Gatineau and to the president of the company, David Rendimonti.
Last December, LiveWell, the company who plans to build a cannabis research and development center at 211 highway 301 in Litchfield, was legally mortgaged by Montreal-based Deslan - AIM. Environmental to the amount of $1,679,119. It was signed and deposited in Montreal on November 20th.
What is a legal mortgage?
A legal Mortgage is a mechanism for guaranteeing the claims of builders and renovators for the work they do in a building. It’s a real estate right. It is attached to and affects the building where the work was carried out for the added value brought by this work. The receivables are secured by the mortgage, since it ultimately allows the property on which the mortgage is registered to be sold in court. The legal sale price is then allocated in whole or in part to the payment of the claim of the builder, renovator or material supplier.
As the mortgage is a real estate right registered in the Registry Office, it will remain in place even if the building on which it is sold is sold once or several times. This is called the “droit de suite”.
The legal mortgage has priority over the conventional mortgage of the mortgage lenders. It is therefore likely to constitute a major obstacle between the borrower and his financial institution since it affects the guarantee of the latter.
Source: Quebec Legal Network