What is a Builders Lien
A lien is a legal claim to an interest in property. It is a type of in rem claim (Latin for “against a thing”) that focuses on the claim against the object rather than a particular person. It is commonly used as a means of securing payment of a debt. A builders lien, pursuant to the Builders Lien Act, SBC 1997, c 45 (the “Act”), is a specific type of lien available to many in the context of a construction project. A builders lien can secure rights against: the interests of the owner in the improvement (i.e. a construction project); the improvement itself; the land in, on or under which the improvement is located; and, the material delivered to or placed on the land.
Who may file a Builders Lien
Subject to exceptions in the Act, a contractor, subcontractor or worker who performs or provides work and/or supplies materials to an improvement has a lien for the price of the work and material, to the extent that the price remains unpaid. A person who performs or provides work or supplies material to an architect, engineer or material supplier does not have a lien.
When to file a Builders Lien
In accordance with the Act, a claim of lien must be filed no later than 45 days after:
- The issuance of a related certificate of completion; or
- The completion, abandonment or termination of the head contract (if any); or
- The completion or abandonment of the improvement (i.e. the project).
These time limits are strict, and they cannot be extended or waived.
If you have concerns that you may be out of time to file a claim of lien, consult with a lawyer.
Why file a Builders Lien
A builders lien is not a guarantee of payment, but can be a powerful and pragmatic tool for getting paid for work or materials in a construction context. Other forms of security are often not available for claims strictly in breach of contract, absent specific agreements regarding the same. At times, a builders lien may be the only form of recourse available.
Where and How to file a Claim of Lien
A claim of lien can be filed in-person at the appropriate land titles office in the prescribed form. It can also be filed online using the Land Title and Survey Authority of British Columbia’s “Web Filing” system (Note: Web Filing requires an e-signature from an individual who is issued a certificate by Juricert – typically a lawyer or notary).
There are a number of common mistakes that people can make when filing a claim of lien, such as naming the wrong legal entity or entities, using the wrong legal description for the property, providing inaccurate or incomplete descriptions of the work, or claiming improper amounts. If you would like assistance with drafting and filing a claim of lien, consult with a lawyer.
