A builders lien registered at the BC Land Title Office creates a statutory charge against property title that restricts the owner’s ability to sell, refinance, or transfer the land until the lien is paid, bonded off, or discharged by court order. According to the Land Title and Survey Authority (LTSA), filing a Claim of Builders Lien (“CBL”) is free. Once the CBL is registered, the lien claimant has up to one year to commence an action at court and file a certificate of pending litigation (“CPL”) on the title of the property. This article explains what a builders lien in BC does to property title at each stage: from the moment of registration, through its impact on property transactions, to the process of clearing the encumbrance from the land title record.
What Happens to Property Title When a Builders Lien Is Filed
Filing a builders lien creates a legal encumbrance on property title that gives the lien claimant a secured interest in the land, registered at the Land Title Office and visible to anyone who conducts a title search on the property.
A builders lien is not a personal debt against the property owner. The lien attaches to the land itself. Under the Builders Lien Act, SBC 1997, c. 45, a contractor, subcontractor, worker, or material supplier who provides labour or materials for improvements on land acquires a statutory right to register a lien against the title of that property. The builders lien secures payment for the value of the work performed or materials delivered. The right exists regardless of whether the claimant has a direct contractual relationship with the property owner.
Registration occurs through the LTSA. The lien claimant submits a Form 5 (Claim of Lien), which the Land Title Office endorses on the property’s title. From the moment of registration, the builders lien becomes a charge against the land visible in the public record. Any person searching the title, whether a prospective buyer, a mortgage lender, or a real estate professional, sees the lien listed as an encumbrance. The LTSA confirms that a Claim of Builders Lien on title is an interest registered to secure payment for labour or materials provided for improvements.
How a Builders Lien Appears on Title at the BC Land Title Office
A builders lien appears as a registered charge on the property’s title, identified by a unique registration number, the claimant’s name, and the filing date, visible to all parties who search the title record.
The Land Title Office assigns a registration number to the CBL upon acceptance. This number appears alongside the lien entry on the title, together with the claimant’s legal name and registration date. The entry remains on title until the lien is discharged, cancelled by court order, or removed by application for expiry through the passage of time. For the full procedure of preparing and submitting the Form 5, including the required applicant or agent information, legal description of the property, details of the claim and debtor, and electronic filing through myLTSA, see the complete guide on how to file a builders lien in BC.
The builders lien differs from a mortgage or a court judgment in one critical respect: the lien does not require a court order or a negotiated agreement to be registered. The Builders Lien Act grants the right to file directly, making registration a self-help remedy available to qualified claimants.
Can You Sell or Refinance a Property with a Builders Lien on Title
A property with a registered builders lien on title cannot proceed through a smooth sale or refinancing because lenders and buyers require clear title, and the lien represents an unresolved statutory charge that takes priority over most subsequent interests registered against the land.
Mortgage lenders evaluate title conditions before advancing funds. A registered builders lien signals an outstanding payment dispute tied directly to the property. Institutional lenders, credit unions, and private mortgage companies uniformly decline to approve new financing or refinancing while a builders lien remains on title. The lien creates uncertainty about the total obligations attached to the land, and no lender accepts that risk without resolution. A refinancing application may be denied at the title review stage, regardless of the borrower’s creditworthiness or equity position.
Buyers face the same barrier. A purchaser’s lawyer or notary conducts a title search as part of standard due diligence before closing. If a builders lien appears on the title search, the transaction may stall. The buyer’s legal counsel advises against completing the purchase until the encumbrance is removed. In practical terms, the property owner must resolve the builders lien before any sale closes.
Certificate of Pending Litigation and Its Effect on Title
A Certificate of Pending Litigation (CPL) is a Land Title Act registration that freezes property title when the lien claimant commences court proceedings to enforce the builders lien, preventing transfers, new mortgages, and all other title dealings until the litigation is resolved or the CPL is cancelled.
The CPL enters the picture at a specific stage of the lien enforcement timeline. After a CBL is registered on title, the lien claimant has one year to commence a court action to enforce the builders lien. Under Section 33 of the Builders Lien Act, the claimant must file a court action and register a CPL in the Land Title Office within that one-year window. Failure to do so extinguishes the builders lien entirely. The Courthouse Libraries BC guide on CPL filing explains the procedural requirements for registration under the Land Title Act.
A CPL has a more severe effect on property title than the CBL alone. While a CBL creates an encumbrance, a CPL effectively freezes the title: no transfers, no new mortgages, and no other registrations proceed against the property until the CPL is cancelled or the court action concludes. The one-year enforcement deadline is strict and non-extendable: if the claimant misses the deadline, the CBL can be cancelled from title. For the full timeline on lien expiry and enforcement deadlines in BC, see our dedicated article on enforcement periods.
How to Clear a Builders Lien from Property Title in BC
A builders lien is cleared from property title through one of four methods: payment of the claim in full, posting security to substitute for the lien, court-ordered cancellation under Section 24 of the Builders Lien Act, or appliction to remove based on expiry after the one-year enforcement deadline passes without the commencement of litigation.
Payment is the most direct path to clearing a builders lien from title. The property owner pays the lien claimant the full amount of the registered claim. The claimant then executes a discharge (Form C), which the owner registers at the Land Title Office to remove the builders lien from the title. The BC Law Institute’s analysis of lien enforcement outlines the statutory framework governing the discharge process and the claimant’s obligation to provide a release upon payment.
Posting security allows the owner to remove the builders lien from title. Under Section 24 of the Builders Lien Act, the owner applies to the BC Supreme Court to have the lien cancelled upon posting security, typically a bond or payment into court. The value of the security is usually equal to the lien amount plus costs and may be less than the full claim amount if the court finds sufficient. The court then orders the builders lien removed from the title, and the payment dispute continues as a monetary claim rather than a charge against the land.
Court-ordered cancellation applies when the builders lien is invalid, expired, or improperly filed. The owner applies under Section 25 for an order cancelling the lien. The court evaluates whether the lien was filed within the 45-day statutory deadline, whether the CBL complies with prescribed form requirements, and whether the claim has legal merit. For a step-by-step walkthrough of all four methods, including associated costs and expected timelines, see the complete guide on removing a builders lien in BC.
Protecting Your Property Title During Construction Projects
Property owners protect title during construction by retaining the statutory 10% holdback on all payments, requiring statutory declarations from subcontractors at each payment milestone, and monitoring the LTSA title record for new lien registrations throughout the project.
The 10% holdback is mandatory under the Builders Lien Act. Every payment the property owner makes to the contractors must retain 10% until 55 days after substantial completion of the work. This holdback exists specifically to cover potential builders lien claims from subcontractors and material suppliers who have not been paid by the general contractor. Releasing holdback funds early exposes the property owner to personal liability for builders lien claims up to the amount that was prematurely released.
Statutory declarations from subcontractors provide an additional layer of protection for property title. At each payment milestone, the property owner requests a declaration from the general contractor confirming that all subcontractors and material suppliers have been paid for work completed to date. This creates a contemporaneous record that reduces the risk of unexpected CBL filings against the property title. Monitoring title by regular title searches or subscription to parcel activity notifications through the LTSA Land Title Practice Manual portal allow property owners to detect new lien registrations , rather than discovering encumbrances at the point of sale or refinancing when the transaction is already underway.
Regular title searches through the LTSA Land Title Practice Manual portal help owners detect lien registrations early.
Builders liens can delay property sales, block refinancing, freeze title through CPL registrations, and create significant legal and financial pressure for property owners, contractors, subcontractors, and suppliers. Whether you need to register a builders lien, remove a lien from title, enforce payment before the one-year deadline, or respond to a lien affecting your property, the construction lien lawyers at ATAC Law advise clients across British Columbia on builders lien disputes, enforcement strategy, title clearance, and construction payment claims. Contact our team today to discuss your situation and protect your legal rights before critical deadlines expire.
Frequently Asked Questions
Does a builders lien automatically prevent the sale of a property in BC?
A builders lien does not impose a statutory prohibition on selling the property. The practical effect is what prevents the sale. Mortgage lenders decline to finance purchases of properties with lien encumbrances on title, and buyers’ lawyers advise against closing until the title is clear. The builders lien is always required to be paid, discharged, or bonded off before the transaction proceeds.
How long does a builders lien stay on property title in BC?
A builders lien remains on property title until it is discharged by the claimant, cancelled by court order, or removed by the property owner for expiry. Expiry occurs when the lien claimant fails to commence a court action and register a Certificate of Pending Litigation within one year of filing the builders lien. After that deadline passes, the property owner submits a Form 17 to the Land Title Office to remove the expired lien from the title.
Can a builders lien be filed on a strata property title in BC?
A builders lien can be filed against a strata lot title in BC. The builders lien attaches to the individual strata unit’s title, not to the common property of the strata corporation. Under the Strata Property Act, a strata corporation’s lien for unpaid strata fees has priority over most charges, but a builders lien filed under the Builders Lien Act takes priority over the strata corporation’s charge.
What is the difference between a builders lien and a Certificate of Pending Litigation?
A CBL is a statutory charge that secures payment for unpaid construction work or materials. A CPL is a court-process registration that freezes property title entirely while the lien enforcement action proceeds through the courts. The CBL is the initial encumbrance registered at the Land Title Office; the CPL follows when the claimant commences a lawsuit to enforce payment. Both affect title, but the CPL imposes stricter restrictions on all title dealings. An experienced construction lien lawyer can assess which registrations appear on a specific title and recommend the appropriate response.
Is it free to file a builders lien against a property in BC?
The LTSA charges no registration fee for filing a Claim of Builders Lien (CBL). Applications can be submitted by mail or in person by appointment at a Land Title Office and are processed typically within 10-15 business days. Online submissions through BC Services Card app are often processed within 2 business days when the application meets legal requirements. The lien claimant bears the cost of filing CBL (if any) and, if applicable, legal fees for lawyer assistance with the filing.
