When a Lien Lands | Clearing a Lien
Clearing a Lien From Title
There are two routes in the Act and they answer different questions. One pays the claim. The other clears your title while you keep arguing about whether you owe anything.
Section 23: pay the amount recoverable
Section 23 removes claims of lien by payment of the total amount recoverable. In substance you are satisfying the claim, and the registration comes off.
This is the route when you accept that the money is owed, or when the amount is small enough that fighting it costs more than paying it. On a small multiplex a disputed trade invoice is often in that range.
The important discipline is to establish that paying the claimant actually discharges the obligation, rather than leaving another party in the chain able to claim the same amount again.
Section 24: give security and cancel
Section 24 allows a claim of lien to be cancelled by giving security. An application is made to the court, and where the court is satisfied that sufficient security has been provided for the payment of the claim, the lien is cancelled from title.
The dispute does not end. It moves off your title and into the litigation, with the security standing in place of the property. You have bought back the ability to sell, refinance or draw while the merits are decided.
This is the route when you think the claim is wrong or inflated but you cannot afford to have your title encumbered while you prove it. Where a sale is scheduled, it is usually the only practical option.
Choosing between them
The deciding question is whether you accept the debt.
If you do, section 23 ends the matter. If you do not, paying under section 23 to make the problem disappear means funding a claim you believe is wrong, and you will not get it back easily.
Section 24 costs more up front because you are posting security and going to court. What it buys is a clean title now and the argument preserved for later. On a build with a completion date and a buyer waiting, that is usually worth the cost.
Best For
- ✓ Owners with a sale or refinance that cannot wait for the dispute
- ✓ Builds where a disputed claim is blocking the final draw
- ✓ Situations where the claim amount is contested rather than accepted
Usually Fails When
- ✕ You pay a disputed claim under section 23 just to clear the title fast
- ✕ You apply under section 24 without legal help on the security amount
- ✕ Nobody checks whether paying the claimant discharges the whole chain
What To Verify Before Spending Money
- → Whether you actually accept the amount claimed
- → What security the court will regard as sufficient under section 24
- → That the payment or security discharges every party who could claim the same debt
Frequently asked questions
How do you remove a builders lien from title in BC?
The Builders Lien Act provides two routes. Section 23 removes the claim by paying the total amount recoverable, which suits a debt you accept. Section 24 cancels the lien by giving security the court finds sufficient, which clears your title while the dispute continues in litigation rather than sitting on your property.
What is section 24 of the BC Builders Lien Act?
Section 24 allows a claim of lien to be cancelled by giving security. The owner or contractor applies to the court, and where the court is satisfied that sufficient security has been provided for payment of the claim, the lien is cancelled from title. The security then stands in place of the property while the claim is decided.
Should I pay a builders lien claim or post security?
It depends on whether you accept the debt. If the amount is genuinely owed, paying under section 23 ends the matter cleanly. If you believe the claim is wrong or inflated, paying it to clear your title means funding a claim you dispute, and section 24 preserves the argument while still freeing the title.
How much security does the court require to cancel a lien?
The court must be satisfied that the security is sufficient for the payment of the claim under section 24, which means the amount turns on the claim itself and the circumstances of the case. This is not a figure to estimate on your own, so instruct a BC construction lawyer before making the application.
Does cancelling a lien end the dispute?
No. Cancelling under section 24 moves the dispute off your title and into the litigation, with the posted security standing in place of the property. The claimant can still pursue the claim, and you can still defend it. What changes is that your ability to sell, refinance or draw is no longer blocked while that happens.
Can I clear a lien in time for a scheduled completion date?
Section 24 exists for exactly this situation, because it clears title without requiring the underlying dispute to be resolved first. Court applications take time to prepare and schedule, so start immediately once you know a sale is at risk rather than waiting to see whether the claimant will withdraw.
What happens if I just pay the claimant directly?
Paying the claimant may resolve that particular claim, but check that it discharges the obligation through the chain rather than leaving another party able to claim the same amount again. This is a real risk where a general contractor was paid and a subcontractor beneath them filed, so confirm the position before releasing money.
Is it cheaper to wait for the lien to expire?
Waiting only works if the claimant fails to commence an action and register a certificate of pending litigation within one year under section 33. Meanwhile your title is encumbered, so a stalled sale, a held construction draw or a missed refinance usually costs far more than clearing the lien would have.
Official Sources Referenced
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