The Release of Mechanic’s Lien Surety Bond is required when there is a lien against real estate property. A Mechanics Lien is a security interest in the title, typically filed by a contractor, subcontractor or supplier. The Release of Mechanic’s Lien Surety Bond then discharges the mechanic’s lien in order to allow the owner of the property the right to sell or deal with the property. All while ensuring that the claimant of the lien any payment that is still owed to them. The lien moves from the property to the bond.
The bond amount is generally issued at a percentage over the lien amount and is determined by the court.
The Release of Mechanic’s Lien Surety Bond often Requires Collateral to the Surety.
In most cases, the surety company will require collateral to secure the obligation. Collateral can be in the form of cash, or an Irrevocable Letter of Credit issued by a financial institution acceptable to the surety. In rare instances, for bonds in excess of $250,000, Real Estate can be used as collateral. With full financial disclosures, a surety may waive the collateral requirement.
Please note that a discharge of mechanic’s lien surety bond often requires that an attorney is involved with the case.
How do I get a Release of Mechanic’s Lien Surety Bond?
First, start the process by completing our easy to navigate, free online application form. If you feel you may qualify for the bond without collateral, you can upload financial information with the application or wait until you are contacted by one of our licensed agents. Then, after your application has been submitted, one of our surety agents will contact you with a no-obligation quote on the bond premium. After that, once you are ready to move forward, you just need to pay the premium and sign the agreement. Lastly, your bond will be mailed to you by USPS Priority Mail. Overnight delivery is also available for an additional fee.
Surety1 has been in the business since 2003. We are licensed in all 50 states. As a result, our services have earned an A+ rating from the Better Business Bureau.