Court / Judicial
Mechanics Lien Release Bond
A lien release bond removes a mechanics lien from real property by moving the lien claim onto a surety bond.
- Required by
- State lien statutes; filed with the probate judge or clerk of court
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
Used when interest in the title to property is for the benefit of those who have supplied labor or materials that improve the property. Once the bond is filed, the property is released and the claimant pursues the bond instead. If the claimant proves the lien, the surety pays up to the bond amount.
Who needs it
- Property owners who need clear title to sell or refinance
- General contractors removing a subcontractor's lien
- Lenders and developers keeping a project moving
What the underwriter looks at
- Amount of the lien claim
- Principal's financial strength
- Merits of the dispute with the lien claimant
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond is needed in Alabama?
Under Code of Alabama 35-11-233, the bond covers the lien amount plus 8 percent interest for three years plus $100 for court costs.
How much in Florida?
Florida section 713.24 requires the lien amount, plus three years of interest at the legal rate, plus the greater of $5,000 or 25 percent of the lien for fees and costs.