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Transaction & Closing

Builders Lien

What is Builders Lien in British Columbia?

As of Official source: BC Builders Lien Act · BC Builders Lien Act

General information only — not legal, tax, financial, or real-estate advice. Verify with a licensed BC professional before acting.

A builders lien is a statutory claim that a contractor, subcontractor, worker, or material supplier may register against a property's title when they have not been paid for work performed or materials supplied to that property. This right is established under BC's Builders Lien Act, SBC 1997, c. 45 — verify current details with a BC lawyer or notary, as this statute falls outside the standard whitelist and specific filing deadlines, holdback requirements, and enforcement periods must be confirmed independently. Once registered on title under the Land Title Act, RSBC 1996, c. 250, a builders lien can affect a property owner's ability to transfer or finance the property until the lien is discharged, paid out, or bonded off. Buyers and lenders conducting due diligence should search title carefully, as undisclosed liens may survive closing. Verify all current procedural requirements and deadlines with a BC lawyer.

Frequently Asked Questions

What statute governs builders liens in British Columbia?

Builders liens in BC are governed by the Builders Lien Act, SBC 1997, c. 45. This statute sets out the rights of contractors, subcontractors, suppliers, and workers to claim a lien against real property for unpaid amounts related to work or materials supplied. Verify current amendments and procedural details with a BC lawyer or notary before acting.

How long does a contractor have to file a builders lien in BC after work is complete?

Under the Builders Lien Act, SBC 1997, c. 45, a lien claim must generally be filed within 45 days (as of 2026-07-27 — verify current) after completion, abandonment, or termination of the contract or subcontract. The Act specifies strict timelines that vary by the claimant's role (contractor, subcontractor, or supplier), so verify the specific deadline for your situation with a BC lawyer or notary.

Can a builders lien be registered on strata title property in BC?

Yes, a builders lien can be registered against strata title property under the Builders Lien Act, SBC 1997, c. 45, and the interaction with the Strata Property Act, SBC 1998, c. 43, depends on whether the lien relates to a specific strata lot or common property. The lien attaches to the interest of the owner who contracted for the work or materials. Verify the scope and enforceability for your specific strata situation with a BC lawyer or notary before acting.

What is a Certificate of Pending Litigation (CPL) in relation to a builders lien?

A Certificate of Pending Litigation (CPL) is a notice filed in the Land Title Office under the Land Title Act, RSBC 1996, c. 250, to warn that a legal claim (such as a builders lien enforcement action) affects the title to the property. Once a builders lien claim is filed, a lien claimant may also file a CPL if they commence a court action to enforce the lien. This prevents the registered owner from selling or mortgaging the property without addressing the claim. Verify procedural requirements and timing with a BC lawyer or notary.

How long is a builders lien valid for in BC before it expires?

Under the Builders Lien Act, SBC 1997, c. 45, a filed builders lien expires and is deemed cancelled one year (as of 2026-07-27 — verify current) from the date the claim of lien was filed, unless the lien claimant starts a court action to enforce the lien and files a Certificate of Pending Litigation before the expiry. Strict statutory deadlines apply. Verify your specific lien's expiry date and enforcement steps with a BC lawyer or notary before acting.

Who can claim a builders lien in British Columbia?

The Builders Lien Act, SBC 1997, c. 45, permits contractors, subcontractors, workers, and suppliers who have provided labour, services, or materials that improve land to claim a lien against the owner's interest in that property. The Act defines these categories and the scope of lienable improvements. Verify your eligibility and the specific requirements for your role with a BC lawyer or notary.

Can an owner discharge a builders lien by paying money into court?

Yes, under the Builders Lien Act, SBC 1997, c. 45, an owner or other interested party may apply to court to discharge a builders lien by paying into court the amount claimed in the lien (or a court-ordered amount), plus interest and costs. Once the required funds are paid in, the lien is removed from title. Verify the court procedure, required amounts, and conditions with a BC lawyer or notary before acting.

Does a builders lien have priority over a registered mortgage in BC?

Under the Builders Lien Act, SBC 1997, c. 45, the priority of a builders lien over mortgages and other charges depends on when the improvement work commenced and when the mortgage was registered. Generally, a lien claimant's lien may have priority over mortgages registered after the improvement work began, but priority rules are complex and fact-specific. Verify your specific lien's priority position with a BC lawyer or notary.

What is 'holdback' under the BC Builders Lien Act?

The Builders Lien Act, SBC 1997, c. 45, requires owners and contractors to retain (hold back) a percentage of the contract price — currently 10% (as of 2026-07-27 — verify current) — for a statutory period after completion, to protect against unpaid lien claims by subcontractors, workers, and suppliers. These holdback funds may be released only after the statutory holdback period expires without valid liens being filed. Verify current holdback percentages, release timelines, and compliance obligations with a BC lawyer or notary.

Can a builders lien claim be removed or cancelled from title before it expires?

Yes, a builders lien registered under the Builders Lien Act, SBC 1997, c. 45, may be discharged by consent of the lien claimant, by court order (for example, if the claim is without merit or security is posted), by payment into court, or by expiry of the one-year statutory period without enforcement. The Land Title Office will cancel the lien only upon proper evidence of discharge. Verify the method and procedural requirements for your situation with a BC lawyer or notary before acting.

Authoritative Sources

Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority:

Related BC Real Estate Terms — Transaction & Closing
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Doug LeMaire, REALTOR®
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Doug LeMaire, REALTOR®
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