A Release of Mechanic’s Lien is to help provide an inexpensive method for material suppliers/contractors to secure the value that has been added to the property owed to them. The Release of Mechanic’s Lien Surety Bond is required when there is a lien against real estate which the plaintiff seeks to take by force of law. The Release of Mechanic’s Lien Surety Bond than discharges the mechanic’s lien in order to allow the owner of the property the right to sell or deal with the property while the ensuring that the claimant of the lien any payment that is still owed to them.
The bond amount is generally issued at a percentage over the lien amount and is determined by the court.
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.
The first step is to apply using our easy to navigate, online application. 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. Within 1 business day you will be contacted by one of our agents with the likely terms and price for the bond.
Surety Solutions Insurance Services, Inc. (Surety1) is a Nationwide provider of surety bonds since 2003. The company maintains an A+ rating from the Better Business Bureau and represents over a dozen, “A” rated surety companies. Surety1 is licensed in all 50 states and the District of Columbia. We are surety bond specialists and surety bond are the only product we offer!