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.
Frequently Asked Questions
The cost is usually 2 – 5% of the bond amount, but will often require collateral. The pricing varies based on the bond amount, and the specifics of the dispute.
Apply and get approved on our website, sign the surety agreements, and we will ship the bond out. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.
It’s possible, but 100% collateral is almost always required in this scenario.
Yes. We provide the lowest rates possible as a result of the large volume of bonds we write.
You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.
You can take a look at our full list of license and permit bonds.