STRENGTHENING YOUR PAYMENT RIGHTS WITH BUILDERS' LIENS IN BC
Construction projects in British Columbia can face unexpected challenges, including delayed payments, work completed but the owner refuses to pay, or disputes over contract terms. When payment is withheld despite completed work or materials supplied, a legal remedy becomes essential.
A builder's lien allows contractors, subcontractors, and suppliers to secure the compensation they are owed. Canadian Bailiff Services aims to support businesses by assisting with the filing and enforcement of builders' liens in BC, ensuring compliance with provincial requirements. Contact us to arrange assistance!
WHAT IS A BUILDER’S LIEN?
A builder’s lien is a statutory claim placed against a property in British Columbia when payment for construction work or materials is not received. It is designed to provide security for individuals and companies contributing labour or materials to improve a property.
Several important purposes:
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Protects contractors and suppliers when disputes delay or block payment.
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Creates a legal claim on the property, preventing its sale or transfer without resolving the outstanding amount.
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Encourages timely payment by placing additional pressure on the property owner to address the claim.
This legal system ensures contributors can recover outstanding financial obligations through supported recovery services.
Filing a builder’s lien becomes essential when payment is delayed or refused, or contractual obligations are not being met. Common circumstances include:
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Completed work not paid for, despite verbal or written agreements.
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Contract disputes, including disagreements over scope, timelines, or responsibilities.
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Subcontractors are unpaid by the primary contractor, even though the property owner may have fulfilled their obligations.
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Supply of materials delivered but not compensated, despite being used on the project.
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Concerns that the property may change ownership, potentially affecting the ability to collect the debt.
Acting promptly is essential, as strict deadlines apply to builder’s liens. Late filings may result in the lien becoming invalid.
WHEN DO YOU NEED A BUILDER’S LIEN?
THE STEP-BY-STEP BUILDER’S LIEN FILING PROCESS
The builder’s lien process in British Columbia follows specific steps outlined in the Builders' Lien Act. Canadian Bailiff Services strives to assist businesses in completing each step accurately. The process:
Confirm Eligibility
Determine whether the work performed or materials supplied qualify under the Act. Only certain contributors can file a lien, and the work must be associated with improving the property.
Document the Claim
Accurate documentation is required, including:
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The amount owed.
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Description of the services or materials provided.
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Legal description of the property.
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Names of the parties involved.
File the Lien
The lien must be recorded in the Land Title Office within the statutory timeframe, typically 45 days from project completion, abandonment, or termination. Missing this deadline may invalidate the claim.
Serve Notice
Once filed, the property owner and relevant parties must be notified. This ensures all stakeholders are aware of the claim and the amount being secured.
Enforce the Lien If Necessary
If payment is still not received, the lien may require enforcement through legal action. This can include initiating a court proceeding to seek payment or the sale of the property to satisfy the debt.
Release or Discharge
Once payment is received, the lien must be discharged formally. This removes the claim from the property title.
FREQUENTLY ASKED QUESTIONS
Below are common questions related to builders' liens:
Who Can File a Builder’s Lien?
A builder’s lien may be filed by contractors, subcontractors, material suppliers, equipment rental providers, and certain professionals who contributed labour or materials to the improvement of a property.
Can the Owner Dispute or Remove My Lien?
A property owner may dispute a lien if they believe it was filed incorrectly or the amount is inaccurate. Removal may occur through court application, payment of security into court, or resolution between parties.
What Happens after I File the Lien?
After filing, the lien restricts the property from being transferred or financed until the claim is addressed. If payment is not made, a court action may be required within the enforcement period to maintain the lien’s validity.
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