A contractor registered a Builders' Lien against a residential property in Edmonton after completing major renovations, for which the homeowner refused to pay the final invoice of $50,000. The homeowner now wants to sell the property. What must occur regarding the Builders' Lien for a new buyer to receive clear title?

Question: A contractor registered a Builders' Lien against a residential property in Edmonton after completing major renovations, for which the homeowner refused to pay the final invoice of $50,000. The homeowner now wants to sell the property. What must occur regarding the Builders' Lien for a new buyer to receive clear title?

Answer options:

• The Builders' Lien will automatically expire after 60 days, so no action is required.
• The buyer can simply ignore the Builders' Lien as it is a dispute between the seller and the contractor. ✅ The homeowner must either pay the lien amount or have it removed by court order or bonding off before or at the time of closing for the buyer to receive clear title.
• The Land Titles Office will remove the lien if the property is sold to a new owner.

Correct answer: The homeowner must either pay the lien amount or have it removed by court order or bonding off before or at the time of closing for the buyer to receive clear title.

Explanation: A Builders' Lien is an encumbrance on title under the Builders' Lien Act that must be satisfied or removed for the seller to provide clear title to a buyer. This typically involves payment, a court order, or bonding off the lien.