Question

Which one of the following is true with respect to a builder's lien?

a. Unpaid suppliers of work and materials have a claim for payment against the land enhanced by their services. This claim can be registered against the owner's title at the Land Titles office.
b. If a lien claimant loses the right to file a lien, he also loses the right to sue anyone for breach of contract.
c. The Builder's Lien Act gives unpaid suppliers of work and materials a claim for payment against the owner of the land enhanced by their services. This claim can be registered against the owner of the property in the Personal Property Registry.
d. If a lien claimant files his lien within the time set, he can be assured that he will collect the full amount of his claim.
e. A lien claimant who is owed money by a general contractor can choose to pursue either the general contractor or the property owner for the full amount of the claim.

Answer 1

The true statement about a builder's lien is that unpaid suppliers of work and materials have a claim for payment against the land enhanced by their services, which can be registered at the Land Titles office.

Step-by-step explanation:

The true statement with respect to a builder's lien is the following:

a. Unpaid suppliers of work and materials have a claim for payment against the land enhanced by their services. This claim can be registered against the owner's title at the Land Titles office.

Builders' liens allow workers, subcontractors, suppliers, and others who contribute labor or materials to a construction project to have a security interest in the property title for the value of their services or materials if they are not paid. This right is typically provided by statutes referred to as Builder's Lien Acts or Mechanics' Lien Acts depending on the jurisdiction. The purpose of a builder's lien is to ensure that those who add value to the property through their labor or materials are compensated, and it serves as a powerful tool to enforce payment.

Option b is incorrect because even if a lien claimant loses the right to file a lien, they may still pursue legal action for breach of contract. Option c mentions the Personal Property Registry, which is generally not where a claim for real property improvements is registered. Option d is not guaranteed, as filing a lien does not ensure full payment but simply provides security for the claim. Option e is incorrect because a lien claimant usually must exhaust their claim against the general contractor before pursuing claims against the property owner.