Start Here | Overview
Builders Liens on a BC Multiplex
Every construction contract in BC runs two clocks at once. One gives unpaid trades 45 days to register a claim against your title. The other holds 10% of every payment for 55 days. They start on the same event and end ten days apart, and that gap is the whole reason the system works.
The one thing to take away
The holdback is not released at 45 days. The filing window closes at 45 days under section 20, and the holdback period expires at 55 days under section 8. Pay on day 45 and you have released the money before a claim filed that morning is reliably visible on a title search.
Holdback
Of the greater of the value of work and material actually provided, or the payment made on account of the contract price.
Time to file a claim of lien
From the day the certificate of completion is issued. Where there is no certificate, from the day the head contract is completed, abandoned or terminated.
Holdback period
From the same trigger. The holdback may be paid out after this period expires, which is ten days after the filing window has closed.
Time to enforce a filed lien
An action must be commenced and a certificate of pending litigation registered within one year of filing, or the lien is extinguished.
Minimum claim
No claim of lien may be filed for an amount under $200.
The holdback timeline, day by day
Both clocks start on the same event. The ten days between them are the only window you get to check title before the money is gone.
- Day 0 Payment certifier
Certificate of completion issued
Section 7 lets a payment certifier issue this once the work is substantially completed. Both clocks start on the same day.
- Days 1 to 45 Anyone unpaid
The filing window is open
A contractor, subcontractor, worker or supplier who has not been paid can file a claim of lien in the land title office.
- Day 45 Anyone unpaid
Filing window closes
Section 22 extinguishes a lien that was not filed in time. After this day no new claim can attach for that contract.
- Days 46 to 55 Owner
Search title
The ten days that exist so you can confirm nothing was filed on day 44 or 45 before you release the money.
- Day 55 Owner
Holdback period expires
Section 8 allows the holdback to be paid out. Under section 9 the liens of the person paid are then discharged, provided no claim was filed in the meantime.
Four things owners get wrong
“The holdback is released 45 days after completion.”
45 days is the deadline to file a lien under section 20. The holdback period runs 55 days under section 8. Paying on day 45 releases the money while a claim filed that morning may not yet appear on a title search.
s.8 and s.20
“Our contract says the trades waive their lien rights.”
Section 42 makes an agreement that purports to waive the Act void. A no-lien clause does not stop a subcontractor from filing.
s.42
“We paid the general contractor in full, so we are clear.”
A subcontractor who was not paid by the general contractor can still file against the owner's interest. Paying the general in full without retaining the holdback can leave you paying twice.
s.4
“The lien will fall off title on its own after a year.”
It is extinguished only if the claimant fails to commence an action and register a certificate of pending litigation within the year. If they do both, it stays and proceeds to court.
s.33
Everything in this hub
Eight pages covering the holdback, the deadlines, and what to do when a claim lands on your title.
START HERE
THE MONEY YOU HOLD BACK
The 10% Holdback
Section 4 requires 10% of the greater of the value of work provided or the payment made. What that means on a real draw, and who you do not hold back from.
The Holdback Account
Section 5 sets up a separate holdback account in a savings institution. When it is required, who signs, and why the builder's operating account is the wrong place for it.
45 Days and 55 Days
The filing deadline and the holdback period are different sections with different day counts. Getting them confused is the most common and most expensive error on a small build.
The Certificate of Completion
Section 7 lets a payment certifier start both clocks deliberately. Without one, the clock starts on an event that is easy to argue about later.
WHEN A LIEN LANDS
A Lien Was Filed on Your Title
What a filed claim of lien does to your title, your construction draw, and your sale. The one-year enforcement deadline under section 33 and the two ways to clear it.
Clearing a Lien From Title
Section 23 pays the claim out. Section 24 posts security and cancels the lien while the fight continues. Which one you want depends on whether you think you owe the money.
Frequently asked questions
What is a builders lien in British Columbia?
A builders lien is a claim registered against the title of a property by someone who supplied work or material to a construction project and was not paid. Under section 2 of the BC Builders Lien Act, a contractor, subcontractor, worker or supplier can register that claim against the owner’s interest in the improvement. Once it is on title the property cannot be cleanly sold or refinanced until the lien is cleared.
How much is the builders lien holdback in BC?
The BC builders lien holdback is 10%. Section 4 of the Builders Lien Act requires the payor to retain 10% of the greater of the value of the work and material actually provided, or the amount of the payment made on account of the contract price. It applies to every progress payment on a construction contract, including a small multiplex build.
How long do you have to file a builders lien in BC?
You have 45 days to file a claim of builders lien in BC. Section 20 of the Builders Lien Act counts those 45 days from the day the certificate of completion is issued. Where no certificate was issued, the window runs 45 days from the day the head contract is completed, abandoned or terminated. Section 22 extinguishes a lien that is not filed inside that window.
When can the 10% holdback be released?
The holdback can be released after the holdback period expires, which section 8 of the Builders Lien Act sets at 55 days from the certificate of completion. That is ten days after the 45-day filing window closes. The gap exists so the owner can search title and confirm no claim was filed at the last moment before the money is paid out.
Is the holdback released after 45 days or 55 days?
After 55 days. The 45-day figure is the deadline to file a claim of lien under section 20, and the 55-day figure is the holdback period under section 8. They are separate sections with separate purposes, and treating them as one number is the most common error on a small BC build. Paying the holdback on day 45 releases the money before the title search can be relied on.
Can a construction contract waive builders lien rights?
No. Section 42 of the BC Builders Lien Act makes void any agreement that purports to waive the operation of the Act. A no-lien clause in a construction contract does not stop a subcontractor from registering a claim against your title. Owners who rely on that clause instead of retaining the statutory holdback are unprotected.
What happens if a lien is filed on my multiplex?
A filed claim of lien sits on your title and will normally stop a construction draw, a sale and a refinance until it is cleared. The claimant then has one year from the filing date to commence an action and register a certificate of pending litigation. Section 33 of the Builders Lien Act extinguishes the lien if they fail to do both inside that year.
How do you remove a builders lien from title in BC?
There are two routes in the Builders Lien Act. Section 23 removes the claim by paying the total amount recoverable into court, which suits a debt you accept. Section 24 cancels the lien by giving security the court finds sufficient, which clears your title while you continue to dispute the claim. Section 24 is the usual choice when a sale or a draw is waiting.
Related reading
The Holdback Is Not Released at 45 Days
Why section 20 and section 8 run different clocks, and what the ten day gap is for.
That No-Lien Clause Is Void
Section 42 voids it, and the real damage is what it persuades owners to skip.
A Lien Just Landed on Your Title
The three things to check first, and choosing between section 23 and section 24.
Official Sources Referenced
See What Your Lot Can Build
Enter any BC address to see how many units the zoning allows and what the build looks like before you sign a construction contract.