What is a builders lien?

• A. A mortgage against a property.
• B. A claim against a property under the Builders Lien Act to collect money.
• C. A regulatory license for builders.
• D. A notice of urban development.

Answer: (B)

A builders lien is a legal claim against a property created to secure payment for work done or materials supplied for a construction or improvement project. It is registered under the Builders Lien Act and attaches to the property’s title, meaning the owner can’t transfer clear title or refinance until the lien is paid or discharged. This mechanism protects contractors, subcontractors, and suppliers by giving them a concrete remedy if they aren’t paid. It’s not a mortgage, not a regulatory license, and not a notice of urban development. There are time limits and enforcement steps defined in the act, which governs how and when the lien can be filed and pursued.