Builder's Liens - Word Handout

Question 1

What is a lien?

Answer 1

A claim which can be made against the title to property in an effort to secure the recovery of money owing to the lien claimant. Until such time that the lien is discharged from title the property is, practically speaking, not capable of being sold.

Question 2

Can a 10% holdback be retained against an engineer, architect, worker, or material supplier?

Answer 2

No, just against owners, contractors, and subcontractors

Question 3

At what value of labour and materials must the owner establish a holdback account?

Answer 3

When they exceed $100,000

Question 4

For an owner, is it sufficient to conduct a Land Title Office search to check for liens filed against title to your property before releasing a lien holdback?

Answer 4

No, because liens can be filed against the holdback as well - so a court registries serach must be done in addition