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  • Sea to Sky Law

Builders Lien

Builders Lien - leverage created by legislation to allow several categories of contributors to the land, including workers and material suppliers, to pressure the land owner to pressure the Head Contractor to pay what is owed.

The pressure comes from the ability of the contributor to file a lien on the title of the land where the work was done or materials were supplied. The result is that anyone searching the title will see the lien which can make lenders and buyers or even other workers or contractors nervous that they will not be paid causing conversations with the land owner which will hopefully accelerate payment to the lien holder.

Some of the reasons why a builder's lien is special is because it can be filed on the land title even though there might not be any contract directly with the land owner eg worker hired by subcontractor, and because the lien can be filed comparatively easily eg without first starting a court action which is required to obtain a CPL. However, since this lien process skips eg the fact checking which a normal Claim process inherently includes, there are strict rules to be followed including the limited time period when the lien is available.

Further, the land owner can demand the lien holder file a CPL within 21 days of the demand being delivered or else the lien is cancelled. The lien claimant must read carefully and act quickly eg a CPL cannot be filed on the land without filing a Claim in the court registry.

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