When a Lien Lands | A Lien Was Filed
A Lien Was Filed on Your Title
A claim of lien is registered in the land title office against your interest in the property. It does not need a court to get there, and it will stop most things you were planning to do next.
What it does immediately
A filed claim of lien appears on the title register. The practical effect is that most transactions stall. A lender will normally refuse to advance the next construction draw. A sale will not complete because the buyer's lawyer will not accept title in that condition. A refinance stops for the same reason.
Nothing has been proven at this stage. Filing a claim of lien does not require a judgment or a court finding that the money is owed. It is a registration, and the dispute about whether the debt is real happens afterwards.
That asymmetry is deliberate. The Act gives unpaid trades a fast remedy precisely because they are usually the party least able to wait.
The one-year deadline in section 33
Filing is the start, not the end. Under section 33, an action to enforce the claim of lien must be commenced and a certificate of pending litigation registered, not later than one year from the date the claim of lien was filed.
If the claimant fails to do both inside that year, the lien is extinguished. If they do both, the lien stays on title and the matter proceeds toward a court determination.
So a lien does not quietly fall away on its own after a year in every case. It falls away only where the claimant did not follow through.
What to check first
Start with the amount and the claimant. Section 17 bars a claim of lien under $200, and section 19 creates liability for wrongful filing, so an inflated or baseless claim is not without consequence for the person who filed it.
Then check the date it was filed against the deadlines. A claim registered outside the 45-day window under section 20 is extinguished by section 22 and can be challenged on that basis.
Then look at your holdback. If you retained it properly, the fund that answers this claim already exists, and the conversation is about releasing it to the right party rather than finding new money.
Best For
- ✓ Owners who have just discovered a claim registered on title
- ✓ Anyone whose construction draw or sale has stalled
- ✓ Builds where a subcontractor dispute was already brewing
Usually Fails When
- ✕ You wait for the lien to expire while a sale is pending
- ✕ You pay the claimant directly without checking the amount or the timing
- ✕ The holdback was already released, so no fund exists to answer the claim
What To Verify Before Spending Money
- → The filing date, checked against the 45-day window in section 20
- → The claim amount and who filed it
- → Whether an action and a certificate of pending litigation have been registered
Frequently asked questions
What happens when a builders lien is filed on my property?
The claim is registered against your title in the land title office and most transactions stop. Lenders typically refuse the next construction draw, and a sale or refinance will not complete while the lien sits on title. No court has decided anything at this point, because filing a claim of lien does not require a judgment that the money is owed.
How long does a builders lien stay on title in BC?
Under section 33 of the Builders Lien Act the claimant must commence an action to enforce the lien and register a certificate of pending litigation within one year of filing. If they fail to do both, the lien is extinguished. If they do both, it remains on title and the dispute proceeds toward a court determination.
Does a builders lien expire on its own after one year?
Only if the claimant does nothing. Section 33 extinguishes the lien where an action has not been commenced and a certificate of pending litigation has not been registered within the year. A claimant who takes both steps keeps the lien alive, so waiting it out is not a reliable strategy when you have a sale or a draw pending.
Can a lien be filed without going to court first?
Yes. A claim of lien is a registration in the land title office and does not require a prior court finding that the debt is owed. The Act gives unpaid contractors, subcontractors, workers and suppliers this fast remedy because they are usually the parties least able to wait for a full trial before getting security.
Is there a minimum amount for a builders lien in BC?
Yes. Section 17 of the Builders Lien Act provides that no claim of lien may be filed for an amount under $200. Beyond that threshold, section 19 creates liability for wrongful filing, so a claimant who registers a baseless or inflated claim can face consequences for having done so.
Can I challenge a lien that was filed too late?
Yes. Section 20 requires the claim to be filed within 45 days of the certificate of completion, or of completion, abandonment or termination of the head contract where no certificate was issued. Section 22 extinguishes a lien not filed as required, so the filing date is one of the first things to check against your records.
Will a lien stop my construction loan draw?
In most cases yes. Lenders advancing construction draws check title before each advance, and a registered claim of lien is normally enough for them to hold the draw until it is cleared. This is a common reason owners need to clear a lien quickly rather than wait for the one-year period in section 33 to run.
What should I do first when a lien appears on my title?
Check three things: the date it was filed against the 45-day window in section 20, the amount and identity of the claimant, and whether you still hold the 10% holdback. If the holdback was properly retained, the fund to answer the claim already exists and the issue becomes who it is paid to rather than finding new money.
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