How to Enforce a Builders Lien
To enforce a builders lien in British Columbia, the lien claimant must commence a Supreme Court action within one year of filing the lien and register a Certificate of Pending Litigation (CPL) against the property. This preserves the lien and initiates formal legal proceedings to recover payment.
Builders liens are essential legal tools under the Builders Lien Act of British Columbia. They protect contractors, subcontractors, workers, and suppliers who have not been paid for work or materials provided to improve land. Filing a lien is only the first step. To actually recover payment, the lien must be enforced through legal proceedings in the Supreme Court of British Columbia.
This blog explains the full process of enforcing a builders lien in British Columbia, including timelines, legal requirements, strategic considerations, and practical examples. Whether you are a tradesperson, builder, supplier, or legal professional, understanding how to enforce a lien is critical to protecting your financial interests.
What Is a Builders Lien?
A builders lien is a legal claim registered against the title of a property by a person who has supplied work, services, or materials to improve that property. The lien secures payment and creates a legal interest in the land. It must be filed within forty-five days of one of the following events:
Completion or abandonment of the improvement
Completion or abandonment of the contract or subcontract
Issuance of a certificate of completion
Once registered, the lien appears on the property title and may prevent the owner from selling, refinancing, or obtaining further permits until the lien is resolved.
Why Enforcement Matters
Filing a lien does not guarantee payment. To enforce the lien and recover funds, the claimant must take legal action. Without enforcement, the lien will expire after one year and become unenforceable.
Enforcement is necessary to:
Preserve the lien rights
Initiate formal legal proceedings
Recover unpaid amounts
Protect against asset transfers or refinancing
Apply pressure for settlement or negotiation
Step 1: Understand the One-Year Deadline
Under Section 33 of the Builders Lien Act, the lien claimant must commence a Supreme Court action within one year of filing the lien. This is a strict limitation period. If no action is commenced within that time, the lien expires and cannot be enforced.
The one-year period begins on the date the lien is filed at the Land Title Office, not the date of the work or the invoice.
Key Point: Mark the deadline clearly and act early. Waiting until the last minute increases risk and reduces leverage.
Step 2: Commence a Supreme Court Action
To enforce the lien, the claimant must file a Notice of Civil Claim in the Supreme Court of British Columbia. This document sets out:
The facts of the dispute
The amount claimed
The legal basis for the lien
The relief sought (e.g., payment, foreclosure, sale of property)
The claim must be filed in the registry closest to the location of the property.
Tip: Include alternative claims such as breach of contract or unjust enrichment to strengthen your position.
Step 3: Register a Certificate of Pending Litigation (CPL)
After filing the lawsuit, the claimant must register a Certificate of Pending Litigation (CPL) against the property title. This is done at the Land Title Office and serves to notify third parties that the property is subject to litigation.
The CPL preserves the lien rights and prevents the owner from selling or refinancing the property without addressing the claim. It is a critical step in enforcing the lien.
Legal Basis: Section 33 of the Builders Lien Act requires the CPL to be registered within the one-year period.
Step 4: Serve the Claim and CPL
The claimant must serve the Notice of Civil Claim and CPL on all parties named in the lawsuit.
Service must be completed promptly and in accordance with the Supreme Court Civil Rules. The claimant must also file an Affidavit of Service to confirm that each party received the documents.
Tip: Use personal service or registered mail with proof of delivery. Keep detailed records.
Step 5: Prepare for Litigation
Once the claim is served, the litigation process begins. This may include:
Discovery: Exchange of documents and examination for discovery
Interim applications: Motions for directions or orders
Settlement discussions: Mediation or negotiation
Trial preparation: Filing evidence and witness lists
Trial: Presentation of the case before a judge
The court may order:
Payment of the lien amount
Foreclosure of the lien
Sale of the property to satisfy the claim
Costs and interest
Strategic Insight: Many lien claims settle before trial. Use the litigation process to apply pressure and explore resolution.
Step 6: Discharge the Lien Upon Resolution
If the lien is paid or resolved through settlement or judgment, the claimant must discharge it from the property title. This involves filing a Release of Builders Lien (Form C) at the Land Title Office.
Discharging the lien restores the owner’s ability to sell or refinance the property and confirms that the dispute has been resolved.
Tip: Include discharge terms in the settlement agreement to avoid delays.
Strategic Considerations
Preserve Evidence
Keep detailed records of:
Work performed
Materials supplied
Invoices and payment history
Contracts and change orders
Communications with the owner or contractor
These documents are critical in proving the claim and defending against challenges.
Act Promptly
Do not wait until the end of the one-year period. Early enforcement increases leverage and reduces risk. It also prevents the owner from transferring or encumbering the property.
Consider Settlement
Litigation is costly and time-consuming. Explore settlement options before trial. Mediation or informal negotiation may resolve the dispute efficiently.
Seek Legal Advice
Builders lien enforcement involves complex legal and procedural issues. A lawyer can help you navigate the process, protect your rights, and maximize recovery.
Common Challenges and How to Address Them
Challenge: Owner disputes the amount
Solution: Provide detailed invoices and documentation
Challenge: Lien filed late or improperly
Solution: Review filing date and legal description
Challenge: Multiple lien claimants
Solution: Coordinate with other claimants or seek court directions |
Challenge: Owner posts lien bond
Solution: Continue litigation against the bond
Challenge: CPL not registered
Solution: File immediately to preserve lien rights
Conclusion
Enforcing a builders lien in British Columbia requires timely legal action, strategic planning, and procedural compliance. By commencing a Supreme Court lawsuit and registering a Certificate of Pending Litigation, the lien claimant preserves their rights and creates a pathway to recover payment.
Understanding the enforcement process empowers contractors, tradespeople, and suppliers to protect their financial interests and resolve disputes effectively. Legal advice is strongly recommended to ensure compliance with the Builders Lien Act and maximize recovery.
At Queenstone Law, we assist clients with builders lien enforcement across British Columbia. Our team provides strategic guidance, document preparation, and representation tailored to your needs. Contact us to learn how we can help you enforce your lien and get paid for your work.
NOT LEGAL ADVICE. Information made available on the Queenstone Law website in any form is for information purposes only. It is not legal advice. You should not rely on, or take or fail to take any action, based upon this information. We would be pleased to discuss any specific legal concerns you may have.
Although we attempt to keep the information on our site accurate and up-to-date, due to the ever changing nature of the law, as well as, the speed at which new cases are released, we cannot guarantee that the content is fully up to date or remains completely accurate.