MS. VICKI HUNTINGTON

BILL M 216 – 2015

BUILDERS LIEN NOTICE TO OWNERS ACT

When approved by a land title office or a gold commissioner, builders liens are a claim against the value of property or mineral title. Liens commonly interfere with property owners' attempts to refinance, mortgage or sell their property. British Columbia does not currently proactively disclose lien filings, and also imposes fees against individuals inquiring about pre-existing liens.

This Act amends the Builders Lien Act to require the intended claimant of a builders lien against land or mineral title to serve written notice to all owners who may be affected by that claim of builders lien before being able to file a claim of builders lien on land title or mineral title.

The Act introduces a standard of procedural fairness by having intended lien claimants inform property owners of the claim of builders lien which may be registered against their property and not letting that claim of builders lien be filed until a land title office registrar or a gold commissioner has been given evidence of the service of that notice.

The service methods and requirements are provided for in the Small Claims Rules, B.C. Reg. 261/93, as amended.

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 The Builders Lien Act, S.B.C. 1997, c. 45, is amended by adding the following section:

Notice to owner

41.1  (1) In order to file a claim of lien under this Act, a lien claimant must first:

(a) serve detailed written notice on the owner of the land or mineral title in question of the lien claimant's intention to file a claim of lien, and

(b) provide written evidence to a registrar of a land title office of the land title district in which the land is located, or to the gold commissioner in whose office the mineral title is located, that the owner has been notified in writing of the claimant's intention to file a claim of lien.

(2) For the purpose of this section "serve" means to carry out service of a notice or document on a person in the same manner as is required for the service of a Notice of Claim under the Small Claims Rules, B.C. Reg. 261/93, as amended.

 
Explanatory Note

When approved by a land title office or a gold commissioner, builders liens are a claim against the value of property or mineral title. Liens commonly interfere with property owners' attempts to refinance, mortgage or sell their property. British Columbia does not currently proactively disclose lien filings, and also imposes fees against individuals inquiring about pre-existing liens.

This Act amends the Builders Lien Act to require the intended claimant of a builders lien against land or mineral title to serve written notice to all owners who may be affected by that claim of builders lien before being able to file a claim of builders lien on land title or mineral title.

The Act introduces a standard of procedural fairness by having intended lien claimants inform property owners of the claim of builders lien which may be registered against their property and not letting that claim of builders lien be filed until a land title office registrar or a gold commissioner has been given evidence of the service of that notice.

The service methods and requirements are provided for in the Small Claims Rules, B.C. Reg. 261/93, as amended.