Building or buying a new home? Confused about your obligations related to builders liens? Here’s the key points:
A buyer of a newly built home is an ‘owner’ under the Builders Lien Act (BLA). He holds back 10% (7% for strata property) of the gross purchase price for 55 days after the date an unconditional occupancy permit is issued.
If you’re having a home built, you’re also an owner under the BLA. You’ll hold back the same percentage from each payment (sometimes called an advance) you make to your general contractor while the home is being built and for an additional 55 days from the occupancy permit’s issuance.
In both cases, you’ll need to establish a holdback account where these funds will stay. You’ll administer this account with the contractor to whom you made the payment. During construction, any interest is yours; afterwards it belongs to your contractor.
Your lawyer can help you check for registered liens, deal with claims, and navigate the process of getting any issues resolved.
For more information, contact Tiffany Warkentin at Pearce Schneiderat 250-492-0907