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RELEASE OF LIEN BOND
American Surety Bonds Agency helps property owners, contractors, businesses, and attorneys obtain Release of Lien Bonds used to transfer a recorded mechanic’s lien from real property to a surety bond. Because requirements vary by jurisdiction, our underwriting team reviews the recorded lien, required bond amount, bond form, filing instructions, and financial information as part of the application process.
What Is a Release of Lien Bond?
A Release of Lien Bond allows a recorded mechanic’s lien to be transferred from real property to a surety bond, commonly called “bonding off” a lien. Once the bond is properly filed and accepted, the lien is released from the property and the claimant’s security transfers to the bond instead.
This bond does not decide whether the lien is valid or resolve the underlying payment dispute. It simply clears the property while the parties resolve the claim separately. If a valid claim is later paid from the bond, the person or business that obtained the bond is responsible for reimbursing the surety.
Also Known As
This bond goes by several names depending on the court and jurisdiction. You may also see it called:
- Lien Release Bond
- Bond to Discharge Lien
- Discharge of Lien Bond
- Mechanic’s Lien Release Bond
- Bond to Discharge a Mechanic’s Lien
- Bond to Transfer or Bond Off a Lien
These generally refer to the same bond described on this page.
When Is a Release of Lien Bond Required?
You may need this bond if:
- A mechanics lien has been filed against your property for unpaid work, labor, or materials
- A pending sale, refinancing, or construction draw is being delayed until the lien is cleared
- You dispute the validity or amount of the lien and want it resolved separately, without it continuing to encumber the property
- A court, state statute, or recording office requires the lien to be bonded off before certain filings can proceed
Your attorney or the court overseeing the lien can confirm whether a bond is the right option in your specific case.
What Do I Need to Apply for a Release of Lien Bond?
This bond is individually underwritten. To apply, you’ll generally need:
- A copy of the recorded lien
- The required bond amount and bond form, as set by the court, statute, or recording office
- The property address and legal description
- Case information, including the lien amount, claimant information, and case number, if litigation has been filed
- Personal or business financial statements and supporting documents
- Information about available collateral, if required
- Attorney contact information and the filing deadline, if an attorney is involved
Once your application and credit review are complete, our underwriting team will provide your rate. Then, once you pay for your bond, we’ll issue it the same day.
How Is the Bond Amount Determined?
There’s no single bond amount used nationwide. Depending on the state, the required amount may be a percentage or multiple of the recorded lien amount, and can include interest, attorney fees, court costs, or an additional allowance. The court, state statute, or recording office sets the exact amount and required bond form for your specific case.
How Much Does a Release of Lien Bond Cost?
Release of Lien Bond premiums are individually underwritten. There’s no standard rate, since the court or state statute sets the required bond amount, commonly as a multiple of the underlying lien amount, and your rate is based on that amount along with your credit history and financial profile.
How Do I Apply for a Release of Lien Bond?
Obtaining your Release of Lien Bond through American Surety Bonds Agency is simple:
- Complete our online application.
- Our underwriting team reviews your application, the lien, and any case information.
- Once approved, review your rate and finalize your bond.
- Provide your completed bond to the court or recording office along with any other required paperwork.
Release of Lien Bond Assistance for Attorneys
American Surety Bonds Agency works directly with attorneys on behalf of their clients to move Release of Lien Bonds through underwriting quickly. Send us the recorded lien and any case information, and our team will work with you and your client to determine the bond amount, required documentation, and next steps.
Why Choose American Surety Bonds Agency?
American Surety Bonds Agency has been helping property owners and contractors meet their court bond requirements for decades. Whether you’re facing a tight closing deadline or need help understanding your lien, our experienced team is here to make the process simple and efficient.
When you choose American Surety Bonds Agency, you’ll receive:
- Experienced surety bond professionals
- Competitive rates from leading surety companies
- Fast underwriting and responsive customer service
- A secure online application process
- Direct assistance for attorneys working on behalf of clients
Above all, we’re committed to helping you meet your court’s bond requirement quickly and correctly, with experienced guidance every step of the way.
Frequently Asked Questions
General Questions
| What is a Release of Lien Bond? | A Release of Lien Bond is a court bond that lets a property owner or contractor remove a mechanics lien from their property by substituting the bond as security in place of the lien. The bond protects the lien claimant, the party who filed the lien, because they can still make a claim against the bond if their claim later proves valid. |
| Who typically needs this bond? | Property owners, general contractors, and developers who want to remove a lien filed against their property, usually so they can sell, refinance, or close out a project without the lien clouding title. |
| Who is the Obligee on this bond? | The Obligee is the lien claimant, typically the subcontractor, supplier, or laborer who recorded the original lien for unpaid work or materials. |
| How is the bond amount determined? | The court or state statute sets the required bond amount, generally based on a multiple of the lien amount, since the bond has to cover the underlying claim plus potential interest and costs if a court upholds the claim. The exact multiplier varies by state. |
| Does posting this bond resolve the underlying payment dispute? | No. The bond removes the lien from the property so the property is free to sell, refinance, or close out, but the parties still resolve the payment dispute separately, through litigation or settlement. |
Application & Process Questions
| Can I get this bond instantly online? | No. Release of Lien Bonds require individualized underwriting based on the lien amount, the case, and the applicant’s financial information, so they aren’t available through our Instant Issue program. Complete our secure online application and our team will guide you through the process. |
| Who can obtain this bond? | Depending on the state and case, the applicant may be the property owner, contractor, lender, or another party affected by the recorded lien. Your attorney can confirm who may obtain the bond in your specific case. |
| Is a Release of Lien Bond the same as a lien waiver? | No. The claimant generally signs a lien waiver to waive or release lien rights, often in connection with payment. A Release of Lien Bond instead substitutes bond security for the property to discharge or transfer a recorded lien. |
| Do I need an attorney? | Lien laws and filing procedures vary by state and case, so an attorney can help confirm the required bond amount, form, deadline, and filing process. American Surety Bonds Agency assists with obtaining the bond but doesn’t provide legal advice. |
Who Can I Contact for More Information?
Contact American Surety Bonds Agency toll-free at (877) 201-8976 or our Atlanta office at (404) 486-2355. Our team can help determine your bond amount and walk you through the application process.
Are there any other bonds I might need?