Most Queensland property buyers focus on what the title says about ownership, mortgages, and encumbrances. Few think to check whether a builder's lien or construction charge has been registered against the property they're about to purchase. Yet in a state with one of Australia's most active construction sectors, these charges are more common than many buyers realise — and missing one can lead to costly legal complications after settlement.
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This guide explains what builder's liens and construction-related charges are, how they appear on Queensland property titles, and why a thorough title search is an essential step for any buyer of new, recently built, or partially constructed property.
What Is a Builder's Lien?
A builder's lien (also known in some jurisdictions as a mechanic's lien or contractor's charge) is a legal claim registered against a property by a builder, subcontractor, or supplier who has not been paid for work or materials provided on that property. In Queensland, the primary legislative framework governing these rights is the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) and, for certain situations, the Property Law Act 1974.
When a contractor is owed money for work completed on a property, they may take legal steps to secure that debt against the property itself. This provides the unpaid party with a claim that must generally be satisfied before clear title can be transferred to a new owner.
How Construction Charges Appear on Queensland Titles
Construction-related charges and encumbrances can appear on Queensland titles in several forms:
1. Caveats
An unpaid builder or subcontractor may lodge a caveat against the title, claiming an interest in the property based on an unpaid debt. Once registered, a caveat prevents the property from being transferred, mortgaged, or otherwise dealt with until the caveat is withdrawn, lapses, or is removed by court order.
A caveat will be visible on a current title search as an encumbrance against the property. It will identify the caveator (the party claiming an interest) and the nature of the claimed interest.
2. Writs of Execution
Where a contractor has obtained a court judgment for unpaid work, they may register a writ of execution against the debtor's property. This creates a charge over the property that must be addressed before clear title can pass to a buyer.
3. Charges Under the BIF Act
Queensland's Building Industry Fairness Act introduced enhanced protections for subcontractors, including project trust account requirements for larger projects. While these protections don't automatically create registered charges on titles, disputes arising from unpaid claims can ultimately result in registered encumbrances if legal proceedings ensue.
4. Registered Mortgages and Charges from Construction Finance
Properties under construction are often funded through construction loans with progressive draw-downs. These construction mortgages will appear on title and must be discharged at settlement. Understanding whether a construction loan has been fully drawn and whether all progress payments have been released is part of thorough pre-settlement due diligence.
When Are These Risks Highest?
Builder's lien and construction charge risks are most acute in specific purchase scenarios:
- Newly completed properties: A house completed within the last 6–12 months may have outstanding subcontractor disputes that haven't yet been resolved.
- Off-the-plan purchases: In complex multi-lot developments, disputes between the developer and contractors can result in caveats or charges on individual lots — sometimes surprising buyers who have been waiting years for settlement.
- Distressed sales and mortgagee sales: When a developer or builder is in financial difficulty, unpaid subcontractors may have already registered caveats before a buyer enters the picture.
- Owner-builder properties: An owner who contracted various trades and then decided to sell may leave unresolved payment disputes that surface on a title search.
- Partially completed renovations: A property sold mid-renovation can carry unresolved contractor claims even if the visible work appears complete.
What a Title Search Reveals
A current title search from Queensland's Titles Registry will show all registered encumbrances against the property, including:
- Active caveats and who lodged them
- Registered writs of execution
- Mortgages (including construction finance mortgages)
- Charges and covenants affecting the property
At TitleFinder, a current Queensland title search costs $74.50 AUD and provides a comprehensive snapshot of the title as it stands at the time of search. This is typically ordered at the contract review stage and again immediately before settlement (known as a pre-settlement search) to confirm nothing new has been registered in the intervening period.
The Critical Importance of Pre-Settlement Title Searches
One of the most important — and often underappreciated — title searches is the pre-settlement search, ordered in the days immediately before completion. Between signing a contract and settlement (which in Queensland is typically 30–90 days), new encumbrances can be registered against a title. A builder who hasn't been paid may lodge a caveat the week before you're due to settle.
If you only search the title at the contract stage and not again at settlement, you risk completing a purchase with an undisclosed encumbrance that you'll then need to resolve at your own expense.
A pre-settlement title search at $74.50 AUD is one of the lowest-cost, highest-value steps in the entire conveyancing process. Don't skip it.
What Dealing Instruments Reveal
When a caveat or charge appears on a title, the title search itself tells you it exists — but it won't always tell you the full details of the underlying claim. Ordering a copy of the dealing instrument (the registered caveat or writ document) gives you the specifics: the amount claimed, the parties involved, the date registered, and any conditions or qualifications.
At TitleFinder, a dealing instrument copy costs $91.80 AUD. If you discover an unexpected charge on a title, this is the next document to order before deciding how to proceed.
Protecting Yourself: A Pre-Settlement Checklist
When buying a new, recently constructed, or partially built Queensland property, follow this checklist:
- Order a current title search at contract review stage ($74.50). Identify any existing caveats, charges, or construction mortgages.
- Obtain copies of any registered dealing instruments ($91.80 each). Understand the nature and amount of any claims.
- Instruct your conveyancer to conduct a pre-settlement title search ($74.50). Confirm no new encumbrances have been registered since exchange.
- Require the vendor to provide evidence of contractor payments. For new builds, request statutory declarations or receipts confirming all contractors have been paid.
- Check for subcontractor notices and QBCC complaints. The Queensland Building and Construction Commission maintains records of unresolved complaints and unpaid claims.
- Ensure the construction mortgage is discharged at settlement. Do not complete settlement unless the construction lender has confirmed discharge or the funds are held in trust pending discharge.
What Happens If a Caveat Is on the Title?
Discovering a caveat on a title doesn't automatically kill a purchase — but it does require resolution before settlement can proceed. Options typically include:
- The vendor discharges the debt: If the claim is valid, the vendor pays the contractor and has the caveat removed before settlement.
- Funds withheld at settlement: The parties may agree to hold a portion of the purchase price in trust, to be released to the caveator or returned to the vendor depending on the outcome of a dispute.
- Legal challenge to the caveat: If the caveat appears to have no legitimate basis, the buyer's solicitor can apply to have it removed.
- Renegotiation of terms: In some cases, discovering an unresolved construction charge warrants renegotiating the purchase price.
Historical Title Searches for Older Builds
For properties built in the early 2000s or earlier, a historical title search can reveal dealing instruments and encumbrances that may have been registered and removed over time. Understanding the full history of registered charges can provide context, particularly if the property has changed hands several times.
A historical title search from TitleFinder costs $86.50 AUD and covers Queensland title history from 1994 onwards. For instruments registered on paper-based titles before 1994, an image of certificate of title is available for $76.90 AUD.
The Bottom Line
Builder's liens and construction charges are a real risk for Queensland buyers of new and recently built property. The good news is that they are discoverable through proper title searches — and the cost of due diligence is a fraction of what it costs to resolve an undetected claim after settlement.
Order your title search early. Order another one before you settle. And if anything appears on that title that you don't understand, get a copy of the dealing instrument and take advice before you complete.
TitleFinder makes it fast and straightforward to order current title searches, historical searches, and dealing instrument copies for any Queensland property. Start your due diligence today — it's the most important $74.50 you'll spend.