What is a builder's lien?

It is a claim a contractor, subcontractor, worker or material supplier registers against land at the Land Title Office when they are not paid. The Builders Lien Act gives them a lien on the owner's interest, the improvement and the land for the unpaid price (s. 2). A lien on title blocks a clean sale until it is paid, replaced by security or removed by the court. Source: Builders Lien Act, SBC 1997, c. 45, ss. 2 and 24 (bclaws.gov.bc.ca).

How long do contractors have to file a lien?

45 days. The clock starts on the date a certificate of completion was issued. Where there is none, it starts when the head contract is completed, abandoned or terminated, or, with no head contractor, when the improvement is completed or abandoned. A lien not filed in time is extinguished. Work stopped for 30 days counts as abandoned unless a strike, weather or a similar cause explains it. Source: Builders Lien Act, ss. 1(5), 20 and 22 (bclaws.gov.bc.ca).

What is the 10% statutory holdback?

The person primarily liable on each contract and subcontract must retain 10% of the greater of the value of the work provided and the payments made. The holdback period ends 55 days after the certificate of completion, or after completion, abandonment or termination where there is no certificate. After it ends, the holdback can be paid out unless a claim of lien has been filed. Source: Builders Lien Act, ss. 4 and 8 (bclaws.gov.bc.ca).

I'm buying a recently-renovated home. What do I ask my lawyer?

Ask three things. When was the work completed, or was a certificate of completion issued? Has the lien filing deadline passed? Is title clear of any claim of lien on the day funds are released? Ask your lawyer or notary to search title as close to completion day as possible, since a lien can be filed on the day itself. Source: Builders Lien Act, ss. 7, 8 and 20 (bclaws.gov.bc.ca).

I'm buying a new build from a developer. Different rules?

Same Act. The developer is the owner, and a builder is the head contractor. A payment certifier named in the contract can issue a certificate of completion, which starts the 45-day filing period for the contract. A claim of lien filed after you register is limited, against your interest as a good-faith purchaser, to 10% of the purchase price. Ask your lawyer how the developer's contract handled the holdback. Source: Builders Lien Act, ss. 7, 20 and 35 (bclaws.gov.bc.ca).

I'm the buyer at completion and there IS a lien on title. What happens?

Your lawyer or notary should flag it before funds are released. The Act lets the owner remove a claim by paying money into court, or have a court cancel it on security the court finds satisfactory. A seller can also pay the claim out of the sale proceeds. Whether you close, delay or end the contract depends on your contract. Source: Builders Lien Act, ss. 23 and 24 (bclaws.gov.bc.ca).

How do I check for liens before I make an offer?

Order a title search from the Land Title and Survey Authority, or ask your agent for one. It lists every charge registered against the property, including a claim of lien. A search shows only what is registered on that day. A contractor may still be inside the filing period, so ask the seller when any recent work was completed and whether a certificate of completion was issued. Source: Builders Lien Act, ss. 15 and 20 (bclaws.gov.bc.ca).

Builder's lien vs. Mechanics' lien: same thing?

In BC the statute calls it a builder's lien. "Mechanic's lien" is the older name still used in some other provinces. Both are a claim on land for unpaid work or material. Search for "claim of lien" when you read a BC title search. Source: Builders Lien Act, SBC 1997, c. 45, s. 1 (bclaws.gov.bc.ca).

BC Builders Lien Act: buyer risk reference

A contractor who is not paid has 45 days from completion to register a lien, and the claim sits on the land, not on the seller. If you buy in good faith, the Act caps what a later claim can take from you at 10% of the price. The three numbers below are the whole risk.

The three numbers

The Builders Lien Act periods and the holdback rate
Number	What it is	Section
45 days	The time to file a claim of lien, counted from the certificate of completion or from completion, abandonment or termination of the head contract. A lien not filed in time is extinguished.	ss. 20, 22
10%	The holdback the person primarily liable on each contract and subcontract must retain from the work provided.	s. 4
55 days	The length of the holdback period, counted from the same starting date. After it ends, the holdback can be paid out unless a claim was filed.	s. 8

The Act has no phrase “substantial completion”. It counts from a certificate of completion, issued by the payment certifier named in the contract, or else from completion, abandonment or termination of the head contract. Work that stops for 30 days is treated as abandoned, with exceptions such as a strike or weather.

What the dates look like

Work completed March 1 has a lien filing deadline of April 15 and a holdback period that ends April 25. A completion day before April 15 leaves the filing period open. A completion day after April 25 means both periods have passed.

This is a date example and not a sale. If the work was done under a head contract with no certificate, the starting date is the day that contract was completed.

What a good-faith buyer is exposed to

A claim filed after you register is limited, against your interest, to 10% of the purchase price. The cap applies to claims filed after the latest of your registration, completion of the head contract, and completion of the improvement.

A $900,000 purchase: the cap on a later lien claim
A $900,000 purchase	Amount
Purchase price	$900,000
Cap on a claim filed after you register (10% of the price)	$90,000
Holdback an owner keeps on $100,000 of renovation work (10%)	$10,000

A cap is not a reason to skip the search. A lien on title at completion is a problem your lawyer should deal with before funds go out. The Act lets the lien be removed by paying money into court or cancelled on security. The closing costs guide shows the other lines due at completion.

Checks before the offer and at completion

Search title before you write the offer. A title search from the Land Title and Survey Authority lists every registered charge, including any claim of lien.
Ask when the work was completed. Ask the seller in writing when recent work was completed, who the head contractor was, and whether a certificate of completion was issued.
Count the days. Add 45 days to the completion date for the filing deadline and 55 days for the end of the holdback period. If your completion day falls before day 45, a lien can still be filed.
Ask your lawyer about a clause. If the work is recent, ask your lawyer whether the contract should require proof that the contractors were paid, or a holdback held in trust.
Search title again on completion day. Ask your lawyer or notary to search as close to funding as possible and to tell you the result before funds are released.

The lien check sits inside the wider list in the buyer due-diligence checklist.

If you hired the work yourself

An owner who hires a contractor must retain the same 10% holdback. The holdback account in section 5 of the Builders Lien Act is required only where the work and material total $100,000 or more. Keep the payment records and the completion date. A buyer will ask for them.

Questions buyers ask

What is a builder's lien?
It is a claim a contractor, subcontractor, worker or material supplier registers against land at the Land Title Office when they are not paid. The Builders Lien Act gives them a lien on the owner's interest, the improvement and the land for the unpaid price (s. 2). A lien on title blocks a clean sale until it is paid, replaced by security or removed by the court. Source: Builders Lien Act, SBC 1997, c. 45, ss. 2 and 24 (bclaws.gov.bc.ca).
How long do contractors have to file a lien?
45 days. The clock starts on the date a certificate of completion was issued. Where there is none, it starts when the head contract is completed, abandoned or terminated, or, with no head contractor, when the improvement is completed or abandoned. A lien not filed in time is extinguished. Work stopped for 30 days counts as abandoned unless a strike, weather or a similar cause explains it. Source: Builders Lien Act, ss. 1(5), 20 and 22 (bclaws.gov.bc.ca).
What is the 10% statutory holdback?
The person primarily liable on each contract and subcontract must retain 10% of the greater of the value of the work provided and the payments made. The holdback period ends 55 days after the certificate of completion, or after completion, abandonment or termination where there is no certificate. After it ends, the holdback can be paid out unless a claim of lien has been filed. Source: Builders Lien Act, ss. 4 and 8 (bclaws.gov.bc.ca).
I'm buying a recently-renovated home. What do I ask my lawyer?
Ask three things. When was the work completed, or was a certificate of completion issued? Has the lien filing deadline passed? Is title clear of any claim of lien on the day funds are released? Ask your lawyer or notary to search title as close to completion day as possible, since a lien can be filed on the day itself. Source: Builders Lien Act, ss. 7, 8 and 20 (bclaws.gov.bc.ca).
I'm buying a new build from a developer. Different rules?
Same Act. The developer is the owner, and a builder is the head contractor. A payment certifier named in the contract can issue a certificate of completion, which starts the 45-day filing period for the contract. A claim of lien filed after you register is limited, against your interest as a good-faith purchaser, to 10% of the purchase price. Ask your lawyer how the developer's contract handled the holdback. Source: Builders Lien Act, ss. 7, 20 and 35 (bclaws.gov.bc.ca).
I'm the buyer at completion and there IS a lien on title. What happens?
Your lawyer or notary should flag it before funds are released. The Act lets the owner remove a claim by paying money into court, or have a court cancel it on security the court finds satisfactory. A seller can also pay the claim out of the sale proceeds. Whether you close, delay or end the contract depends on your contract. Source: Builders Lien Act, ss. 23 and 24 (bclaws.gov.bc.ca).
How do I check for liens before I make an offer?
Order a title search from the Land Title and Survey Authority, or ask your agent for one. It lists every charge registered against the property, including a claim of lien. A search shows only what is registered on that day. A contractor may still be inside the filing period, so ask the seller when any recent work was completed and whether a certificate of completion was issued. Source: Builders Lien Act, ss. 15 and 20 (bclaws.gov.bc.ca).
Does the lien framework apply to my home repairs (e.g., a kitchen reno)?
Yes. An owner who hires a contractor for work on a house is the person primarily liable and must retain 10% of the greater of the value of the work and the payments made. The holdback account in section 5 of the Builders Lien Act is required only where the work and material come to $100,000 or more. Keep records of payments and of the completion date, because a buyer will ask. Source: Builders Lien Act, ss. 4 and 5(8) (bclaws.gov.bc.ca).
Builder's lien vs. Mechanics' lien: same thing?
In BC the statute calls it a builder's lien. "Mechanic's lien" is the older name still used in some other provinces. Both are a claim on land for unpaid work or material. Search for "claim of lien" when you read a BC title search. Source: Builders Lien Act, SBC 1997, c. 45, s. 1 (bclaws.gov.bc.ca).

Sources(1)

Also drawn from: BC Laws.

Builders Lien Act, chapter 45 of 1997BC Laws, read November 5, 2026

Builders Lien Act, SBC 1997, c. 45BC Government, retrieved Nov 5, 2026
bc.builders_lien_act.overview, v1, in the Codex

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Last reviewed November 5, 2026 by Bronson Job PREC, REALTOR®. Licence CC BY 4.0. How we verify.

I’m Bronson Job, a REALTOR® (PREC) with Momentum Realty Inc., so I earn a commission when I help someone buy or sell. This is general information, not advice on your situation, and I take no payment from any third party named here. How I verify.