Builders Lien (BC Builders Lien Act)

A builder's lien is a charge registered in the BC Land Title Office for unpaid construction work or materials. If you know it as a mechanic's lien, which is the usual term in the United States, or as a construction lien, which is what Ontario calls it, this is the British Columbia equivalent and it works differently enough to be worth reading twice. It must be filed within 45 days of substantial completion (or abandonment) of the head contract — or 45 days from a certifier's certificate of completion where one is issued. The Act also requires owners and head contractors to retain a 10% statutory holdback from each progress payment and hold it for 55 days after substantial completion before releasing it.

A lien on title is a deal-killer at closing. The buyer's lawyer cannot register the transfer until title is clean, which usually means paying the lien out of sale proceeds or posting cash security to vacate it — even when the seller disputes the underlying invoice. If you are selling a recently renovated home, retain at least 10% of every contractor invoice yourself and do not release the holdback until the 55-day window has elapsed. If you are buying a newly built or recently renovated home, ask your lawyer to run a title search close to the completion date — liens registered after offer acceptance are common.