How to Defend Against a Wrongfully Filed Builders Lien

Facing a builder’s lien that was filed unfairly can be stressful, especially when property rights and financial interests are at stake. A lien can remain on title and affect matters like refinancing or sale of the property, even when the lien has no valid basis. At Linley Welwood, we understand the importance of protecting your rights and helping you navigate the legal steps available under British Columbia law. That is why we have outlined how to defend against a wrongfully filed builders lien and the steps you can take to challenge an improper claim.

Learn more about what a builders lien is.

Steps to Take to Defend Against a Wrongfully Filed Builders Lien

A builders lien is meant to secure payment for work or materials supplied on a construction project, but it must meet specific requirements under the Builders Lien Act of British Columbia to be valid. If the lien fails to meet these requirements, there are legal avenues to challenge and remove it.

Understand What Makes a Lien Wrongful

Knowing whether or not a lien was filed outside required time limits, contains false information, or does not properly describe the property or work involved can help determine if the lien is wrongful. Under Section 19 of the Builders Lien Act, a person who files a lien against property to which it does not legally attach may be liable for the owner’s costs and damages resulting from the wrongful filing. This can include legal expenses and costs incurred to remove the lien from the title.

Ways to Remove an Improper Lien

In British Columbia, there are several mechanisms to remove a wrongful builders lien from title. If the lien is technically or statutorily invalid (for example, it was filed late, against the wrong property, by a party not entitled to lien, or otherwise not in compliance with the Builders Lien Act), an owner or other interested party may apply to the Supreme Court of British Columbia under s. 25 of the Act for an order cancelling the lien. This type of application is directed at defects apparent on the face of the lien or failures to meet statutory requirements, rather than disputes about the underlying work or payment. If successful, the court can order the lien removed from the title without requiring the posting of security.

Where the lien’s validity turns on disputed facts or the merits of the claim (for example, whether work was performed, its value, or whether the lien claimant has been paid), the lien is typically addressed through lien enforcement proceedings or by defensive applications within those proceedings. Separately, and often as a practical solution, an owner may remove the lien from title by posting security under s. 24 of the Builders Lien Act, which transfers the lien from the land to the security while preserving the parties’ rights to litigate validity later. Strict time limits apply under the Act, including deadlines for lien filing and enforcement, and failure to comply can result in the lien being extinguished by operation of law.

Seek Professional Legal Assistance

Navigating builders lien disputes involves detailed procedural rules and deadlines set out in the Builders Lien Act. For example, there are specific requirements about filing time frames and how the property and parties must be described in the lien. Consulting with experienced lawyers who are familiar with British Columbia construction law can help preserve your rights and build a strong defence.

If you believe a lien has been wrongfully registered against your property, reach out to Linley Welwood for guidance and representation in exploring the legal options available to address and resolve the issue.