BC Realtor Guide to Builder Liens & the Builder Lien Act (2026): New Construction, Holdbacks, and Title Protection
A builder's lien is one of the most disruptive title issues a BC realtor can encounter mid-transaction. It can appear on title days before completion — blocking the sale, creating buyer liability, and potentially trapping the seller's equity. They're most common after renovations, new construction, and custom builds, but can arise on any property where improvement work was done in the past 45 days. This guide explains BC's Builder Lien Act, how liens work in practice, and how to protect your clients when one appears.
What Is a Builder's Lien in BC?
A builder's lien (sometimes called a mechanics' lien or construction lien in other provinces) is a statutory charge against land, registered at the Land Title Office, that secures a claimant's right to payment for work, services, or materials provided to improve the land.
BC's Builder Lien Act [RSBC 1996, c.45] creates this right. It exists because the construction industry has a fundamental payment problem: a general contractor gets paid by the owner but may not pay their subcontractors; subcontractors may not pay their sub-subtrades; and workers at the bottom of the chain may not be paid at all. The lien right gives everyone who contributed to the improvement a direct security interest in the land — bypassing the payment chain and going directly to the property.
Who Can File a Builder's Lien?
Any person who has a direct or indirect contract to provide work, services, or materials for an improvement to land. This includes:
- General contractors (head contractors)
- Subcontractors (framing, plumbing, electrical, HVAC, roofing, etc.)
- Sub-subcontractors (speciality subtrades engaged by subcontractors)
- Workers (individual tradespeople who weren't paid)
- Material suppliers (lumber yards, suppliers who delivered materials to the site)
- Professionals (architects, engineers, interior designers, surveyors) for their design work
- Equipment rental companies (for heavy equipment used on site)
The lien right is powerful because subcontractors and workers don't have a contract with the landowner — they have a contract with the general contractor. Yet the Builder Lien Act gives them the right to claim against the land itself.
The 45-Day Filing Window
The most important number in the Builder Lien Act is 45 days. A lien claimant has 45 days from the trigger date to file their claim of lien at the Land Title Office. After 45 days, the lien right is permanently extinguished.
The Trigger Date: Substantial Completion vs. Last Work
| Claimant Type | 45-Day Clock Starts |
|---|---|
| Head contractor / general contractor | 45 days from substantial completion or abandonment of the improvement — the date the head contractor's work is substantially complete. |
| Subcontractor / sub-subtrade / worker | 45 days from the date they last provided work, services, or materials on the project — regardless of whether the overall project is still ongoing. |
| Material supplier | 45 days from the last delivery of materials to the site. |
Practical consequence for realtors:A property that had significant renovation work completed 30 days before listing is still within the lien window. Any subtrade or supplier who hasn't been paid has up to 45 days from their last involvement to register a lien. This is why a title search at listing is not sufficient — a clean title today may have liens registered next week.
The completion day timing risk
In a worst-case scenario: a property sells, the buyer completes without a lien on title (confirmed by title search the night before), and the next morning a subcontractor files a lien — before the title transfer is registered at LTO. The lien could attach to the property even after the buyer takes ownership. This is precisely why title insurance with construction/lien coverage matters and why some conveyancers hold back funds even after completion until the lien window fully expires.
The 10% Holdback: BC's Owner Protection Mechanism
BC's Builder Lien Act requires that an "owner" (anyone who has an improvement made to their land, including a homeowner doing a renovation) withhold 10% of the value of all work done and materials supplied until:
- The 45-day lien filing period expires after substantial completion, AND
- No liens have been filed (or all liens have been discharged)
The holdback serves a critical function: it creates a pool of money that lien claimants can look to for payment, even if the general contractor has been paid in full and has disappeared with the money. If an owner pays out 100% of the contract price before the holdback period expires and a subcontractor files a lien, the owner may be personally liable to the subcontractor — even though they already paid the general contractor.
Holdback Example
If the owner pays $150,000 in full before the holdback period expires and a subcontractor files a $12,000 lien — the owner may owe the $12,000 again. Maintaining the holdback protects the owner by ensuring there are always funds available to pay lien claimants.
Most homeowners doing renovations don't know about the holdback requirement and pay their contractors in full before the 45-day window closes. This is a significant area where realtors can add value — advising sellers who have recently renovated to confirm their contractor situation before listing.
How a Lien Appears on Title — and What Realtors See
A builder's lien is registered at the Land Title Office by filing a "Claim of Lien" form. The claimant files within 45 days and pays the registration fee. The lien then appears in the Land Title search as a charge against the property.
Searching for Builder's Liens
Liens are revealed in a title search through the Land Title Office's BC OnLine system. The search shows all registered charges, including builder's liens. Key points:
- A lien search on the day of listing may miss liens that are filed later (within the 45-day window)
- Conveyancers typically search title again immediately before completion — sometimes the morning of
- For new construction or recently renovated properties, a lien search should be done twice: at subject removal and again immediately before completion
- Title insurance policies typically cover liens that were not discoverable at the time of purchase — check the specific policy
What the Lien Shows
When a lien appears in a title search, it will show:
- The claimant's name (individual or company)
- The amount claimed
- The nature of the claim (work, services, materials)
- The date filed
- A registration number
How a Builder's Lien Affects a BC Real Estate Transaction
A builder's lien on title creates significant complications for any pending sale:
The Buyer's Risk
If a buyer completes with a lien on title, they purchase the property subject to the lien. The lien claimant can then pursue the property — potentially forcing a sale — to collect their unpaid amount. The buyer bought the property and inherited the problem.
In practice, mortgage lenders will not advance funds if there is a lien on title. The buyer's conveyancer will see the lien in their pre-completion title search and refuse to proceed without discharge or a sufficient holdback.
Standard Resolution Approaches
| Approach | How It Works | Timeline |
|---|---|---|
| Pay and discharge | Seller pays the lien claimant, claimant files a Discharge of Lien at LTO. Title becomes clean. | Days to weeks, depending on negotiation. Fastest if undisputed. |
| Lien holdback at completion | Parties agree to proceed; buyer's conveyancer holds back sufficient funds from seller's proceeds until lien is resolved. Seller gives written undertaking to resolve. | Completion proceeds; funds held until discharge. Requires buyer's consent and lender approval. |
| Bond out the lien | Seller obtains a surety bond from an insurance company for 150% of the lien amount. Bond replaces the lien on title — title becomes clean. Lien claimant now has claim against the bond, not the property. | Faster than litigation. Bond premiums: 1–2% of bond amount annually. Good option when lien is disputed. |
| Court application to discharge | Seller challenges the lien in court as improper (expired, defective, fraudulent). Court orders discharge. | Months. Last resort. Only appropriate when lien is clearly improper. |
Builder's Liens and New Construction Purchases
New construction sales in BC carry elevated lien risk because the lien window may not have expired before the purchase completes. A developer who completes 100 units is dealing with dozens of subcontractors simultaneously — any of whom may not be paid.
Developer Obligation at Completion
In a new construction purchase from a developer (presale), the developer's contract typically includes a warranty that title will be free and clear of liens at completion. The developer is responsible for clearing all liens from their construction activities. Buyers should:
- Confirm this warranty exists in the developer's contract (review with their own lawyer)
- Ensure their conveyancer searches title immediately before completion — not just on closing day of a large project
- Purchase title insurance as standard practice (virtually all new construction purchases should include this)
The Post-Completion Risk Period
Even after a new construction purchase completes cleanly, liens from subcontractors on the developer's overall project could potentially attach to individual unit titles. This is a rare but real risk — particularly with smaller developers who run tight cash flow. Title insurance is the primary protection against this scenario.
Strata Buildings and Liens
In a strata building, a builder's lien filed against the common property (by a contractor working on the building as a whole) can appear on all individual unit titles. Buyers of units in buildings under construction or recently completed should search the parent parcel as well as their specific strata lot.
Renovation Transactions: The Hidden Lien Risk
This is where most BC realtors encounter builder's liens in practice. A seller does a major kitchen renovation, lists 3 weeks after the contractor finishes, accepts an offer, and during the buyer's due diligence or immediately before completion — a lien appears from the tile subcontractor who wasn't paid.
Questions Realtors Should Ask Sellers at Listing
Pre-Listing Lien Risk Assessment
- ☐ Have you done any renovation, construction, or improvement work in the past 60 days?
- ☐ If yes — is all the work completely finished, or is anything still in progress or waiting on warranty items?
- ☐ Have you paid all your contractors, subcontractors, and suppliers in full?
- ☐ Have you received a 10% holdback release (or was a 10% holdback maintained)?
- ☐ Are you aware of any disputes with contractors about the quality of work or final payment?
- ☐ Have any tradespeople, contractors, or suppliers contacted you about unpaid invoices?
If a seller has had recent work done, their conveyancer should confirm no liens are pending and ideally get a statutory declaration from the general contractor that all subcontractors and suppliers have been paid. This is not foolproof — a contractor can sign a declaration and still have unpaid subs — but it creates a legal obligation and some protection.
The Property Disclosure Statement
BC's Property Disclosure Statement asks sellers about unpaid improvements and disputes with contractors. Sellers who know about unpaid contractors (and therefore potential lien exposure) must disclose this. A seller who conceals a known lien risk faces potential misrepresentation liability.
Certificate of Pending Litigation (CPL): The Related Title Risk
A Certificate of Pending Litigation (CPL) is sometimes confused with a builder's lien — both appear as title charges and both can block a sale. But they are legally distinct.
| Feature | Builder's Lien | Certificate of Pending Litigation |
|---|---|---|
| Legal basis | Builder Lien Act — statutory right for unpaid construction work | Court proceeding claiming an interest in land (e.g. property dispute, failed APS, fraud) |
| Who files | Unpaid contractors, trades, suppliers | Party to litigation who has a claimed interest in the land |
| Filing deadline | 45 days from last work/substantial completion | No deadline — can be filed any time litigation is commenced |
| Discharge method | Pay claimant; bond out; or court order | Court order; settlement; or posting security with the court |
| Common causes in RE | Unpaid renovation contractor; developer cash flow issues | Buyer who was refused completion claiming right to specific performance; estate dispute; family law property division |
Both a builder's lien and a CPL will appear in a title search. Both require legal resolution before a clean title can be conveyed. When either appears in your transaction, immediate referral to the client's lawyer is essential — these are not matters for realtors to resolve directly.
Title Insurance and Lien Protection
Title insurance is the primary risk management tool for lien-related issues. BC title insurance (from FCT, Stewart, or Chicago Title) typically covers:
- Builder's liens that were not registerable or discoverable at the time of purchase (e.g., a lien filed after completion that relates to pre-completion work)
- Liens from work the buyer didn't know about (the seller concealed the renovation)
- Survey issues, encroachments, and other title defects
Title insurance does not typically cover:
- Known liens (ones visible in the title search before purchase)
- Liens the buyer assumed when they completed with full knowledge
- Work done by the buyer themselves after purchase
For new construction and recently renovated properties, title insurance is essential — not optional. The premium is typically $250–$600 for a residential purchase and is paid once at closing.
Advisory Scripts
Seller Client: Renovated Home — Pre-Listing Lien Conversation
"Before we list, I need to ask about the renovation. BC law gives your contractor and any tradespeople they hired up to 45 days from when they last worked on your property to register what's called a builder's lien against your title. If you haven't paid everyone in full — or if there are any disputes about the work — we could have a lien appear on title after we've accepted an offer. That would stop the sale cold. Even if you've paid the general contractor, the plumber or tile guy hired by the GC might not have been paid. Can you confirm all the trades have been paid, and has it been more than 45 days since the last person was on site? If not, your lawyer should get a statutory declaration from your contractor before we go live."
Buyer Client: Lien Found on Title Before Completion
"Our title search found a builder's lien on the property — registered by the tile subcontractor for $8,500 they claim they weren't paid. This is a problem we have to solve before we can complete. Your conveyancer will contact the sellers and require them to discharge this lien from their proceeds before we release any funds. The most common outcome: the seller pays the lien amount, the contractor files a discharge, and we complete a few days late. Your lender won't advance with a lien on title. I'll let your conveyancer handle the legal mechanics — but you should know this is the seller's problem to solve, not yours."
Buyer Client: New Construction Purchase — Title Insurance Recommendation
"For a new construction purchase, I strongly recommend title insurance — and so will your notary. Here's why: the developer has been working with dozens of subcontractors. Even if the developer has paid the general contractor in full, some of those subtrades may not have been paid yet. They have 45 days from when they last worked on the project to file a lien — and that window may still be open when you take possession. Title insurance protects you against any liens that surface after you've completed, as long as they weren't visible in the title search before closing. It costs a few hundred dollars and covers you for as long as you own the property. It's not optional on a new build — it's standard practice."
Frequently Asked Questions
Who can file a builder's lien in BC?
Anyone with a direct or indirect contract to provide work, services, or materials to improve land: general contractors, subcontractors, sub-subtrades, workers, material suppliers, architects, engineers, and surveyors. They all have the right to claim against the land itself if unpaid.
How long does someone have to file a builder's lien in BC?
45 days from the trigger date. For the head contractor, this is 45 days from substantial completion. For a subcontractor or worker, it's 45 days from when they last provided work, services, or materials on the project. After 45 days, the lien right is permanently gone.
What is the 10% holdback under BC's Builder Lien Act?
An owner must withhold 10% of all amounts paid for construction work until the 45-day lien period expires after substantial completion and no liens have been filed. Failing to maintain this holdback can make the owner directly liable to unpaid subcontractors — even if they already paid the general contractor in full.
What should a buyer do if they find a builder's lien on a property?
The buyer's conveyancer should require the seller to discharge or bond the lien before completion. If completion must proceed, a holdback from seller's proceeds can bridge the gap — but the buyer's lender must approve. Completing with a known lien on title is rarely advisable without specific legal advice.
What is the difference between a builder's lien and a Certificate of Pending Litigation?
A builder's lien arises under the Builder Lien Act for unpaid construction work and has a 45-day filing deadline. A CPL is filed in court proceedings claiming an interest in the land — arising from property disputes, failed sales, or family law matters. Both appear on title and can block a sale, but have different legal bases and discharge mechanisms.
Conclusion
Builder's liens are one of the more technically complex title issues BC realtors face — but they follow predictable patterns. Recent renovations and new construction are the primary risk scenarios. The 45-day window means that a property listing within six weeks of construction finishing has live lien exposure. Understanding this allows realtors to ask the right questions at listing, set buyer expectations on new construction, and act quickly when a lien appears mid-transaction.
The key takeaways: always ask sellers about recent renovations at listing, recommend title insurance on every transaction (mandatory on new builds), and refer all lien disputes immediately to your client's lawyer — this is not territory for a realtor to navigate alone.