What is a Mechanics Lien Bond?
A mechanics lien bond is required of owners when there is a payment dispute regarding services or materials rendered on a construction project. A lien is usually filed on the owner’s property by a contractor when there is a dispute regarding payment for services that were provided on the job. The lien is used by the contractor to take the owner’s property lawfully and foreclose it an attempt to secure payment for services/materials that were performed/added to the property.
A release of lien surety bond permits the owner to release the mechanic's lien, which returns the legal right to sell the property in question to the owner. This bond guarantees any payment that is due to the contractor who filed the lien (including interest) will be paid should they win the case.