What is a builder’s lien holdback?

A builder’s lien holdback is a portion of the purchase price that is withheld by the builder’s lawyer to protect against potential claims or liens by subcontractors or suppliers who may have worked on the property. The holdback amount, typically a percentage of the purchase price, is held in trust and released to the builder once a specified period has passed without any claims or disputes arising.

What are your feelings
Updated on August 24, 2023