Which one of the following is true with respect to the builder's lien acts?
A) Various provincial statutes give suppliers of work and materials a claim for payment against the land enhanced by their services.
B) If a lien claimant loses the right to file a lien, he also loses the right to sue for breach of contract.
C) A lien claimant 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.
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) Compliance with the statutory holdback provisions is required, but gives an owner no protection against potential lien claims.

Question

Quizplus · Accepted Answer

This statement correctly describes the purpose and effect of builder's lien acts in Canada. These acts provide suppliers of work and materials with a security interest in the land where their work was performed or materials were supplied. This security interest (or lien) gives them a claim for payment against the land which is superior to other unsecured creditors.

Which One of the Following Is True with Respect to the Builder's