Lien Pitfall – Transfers Of Land

When a transfer of title takes place, it is possible that builders' lien claimants automatically lose their builders' lien rights. This is another Builders' Lien Act trap for the unwary.

If a lien is registered before the transfer of land, it will survive the transfer. (Or more likely, the transfer will be delayed until the lien is discharged.) However, if the transfer of land occurs after lien rights arise, but before the contractor or supplier registers a lien, then lien rights are at risk. That is because only a statutory "owner" is subject to lien claims. If the purchaser did not request the work to be performed or materials to be supplied and was not otherwise an active participant in the construction project, then the purchaser is not an "owner" within the statutory definition.