By Amy Mortimore.

The Builders Lien Act allows companies and individuals who contribute work or services on a project to file a claim of lien directly on title, without any prior judicial approval of the claim. The claim of lien encumbers title, and will likely stop further advances under the construction loan until the claim of lien is removed. This is an extraordinary remedy and can often cause delay and expense. Owners often tell us that the lien legislation unfairly favours the lien claimant. Our response is that, as an owner, there are a number of steps and approaches available to reduce the risk of liens.