What is a Builders' Lien?
If a contractor, subcontractor, or another party entitled to
payment during a construction project doesn't receive payment
within the agreed-upon time frame, then one form of recourse such
parties have is abuilders' lien.
Note: some provinces have prompt payment legislation in place that
governs adjudication of payments under strict timelines. This
article will not address those provisions but will only speak to
builders' lien deadlines.
By registering a builders' lien, the impacted party
registers and secures a legal interest in the real property, and
this legal interest can be used to recover payment from the
property owner, or other parties, against which the lien is filed.
One of the consequences of a lien is the property typically cannot
be sold or mortgaged until and unless the lien is lifted, or until
no other legal interests exist against the property in question.
This is one reason to make sure you know your
