Lien Release Surety Bonds

Clear the lien off your title. Fight the claim separately.

A mechanic lien release bond removes a lien from your property so a sale or refinance can close, while the underlying payment dispute goes on being argued. BF Bond has written them since 1949, working with owners, developers, and their attorneys.

The Basics

What is a mechanic lien release bond?

A mechanic lien is a claim a contractor, subcontractor, or supplier files against real property when they say they have not been paid for work or materials that went into it. Once recorded, it clouds the title, and a clouded title generally stops a sale, blocks a refinance, and can freeze construction draws from a lender.

A lien release bond, sometimes called a bond to discharge a mechanic lien, substitutes the bond for the property. The lien is discharged from the real estate and the claimant recourse shifts to the bond instead. The dispute does not disappear. If the claimant proves in court that they were owed the money, they recover against the bond, and the surety then seeks reimbursement from whoever indemnified it. What changes is that your property is free to transact in the meantime.

This is why owners and developers use them even when they are confident the lien is meritless. Litigating a lien claim can take a year or more, and a closing date will not wait that long. The bond decouples the two timelines. Statutes typically require the bond be written above the lien amount, often at one and a half or two times, to cover interest, costs, and in some states attorney fees.

Discharges the lien from the property, shifting the claim to the bond
Lets a sale, refinance, or draw schedule proceed on time
Written above the lien amount, per the statute in your state
Does not resolve the dispute, which continues on its own track

Lien release bonds at a glance

Bond amount

Set by statute, commonly one and a half to two times the amount of the recorded lien

Premium

An annual rate on the bond amount, running until the lien claim is resolved and the bond released

Collateral

Frequently required, since a court has not yet determined whether the underlying claim is valid

Who files it

The property owner, the developer, or the general contractor seeking to clear the title

Also called

Bond to discharge mechanic lien, lien discharge bond, release of lien bond

Who Requires One

When a lien release bond helps

Any time a recorded lien is holding up a transaction you cannot afford to delay.

Property Owners

Owners with a closing date who cannot deliver clear title while a subcontractor lien sits recorded against the parcel.

Developers

Developers needing liens cleared so units can be conveyed or a project can move to permanent financing.

General Contractors

GCs bonding around a lien filed by a second-tier sub or supplier, often under a contractual duty to keep the title clean.

Lenders & Title Companies

Situations where a lender or title insurer will not fund or insure until the lien is discharged of record.

How It Works

How we place the bond

Call or apply

These usually run against a closing date, so calling first is often fastest. Your attorney can start it instead.

Send the lien

We require the recorded lien, the property details, and the statutory multiple your state applies.

Underwrite and secure

We review the dispute and the indemnitor position, arrange collateral where required, and place it with a carrier.

Record and clear

The executed bond goes out on the correct form for filing or recording, and the lien comes off the property.

Questions

Lien release bond FAQs

How much does a lien release bond cost?

Premium is an annual rate applied to the bond amount, and because the bond is written above the lien at the statutory multiple, the base is larger than the lien itself. The rate depends on the financial strength of the indemnitor and the nature of the dispute. It renews annually until the claim is resolved, so a lien fight that drags on costs more than one that settles.

Why is the bond larger than the lien?

State statutes require it, so that if the claimant ultimately wins, the bond covers not just the principal but the interest, costs, and in many states attorney fees that accumulate while the case runs. One and a half or two times the lien amount are the most common multiples. Your attorney or the statute will confirm which applies where the property sits.

Does bonding around the lien mean I have admitted I owe the money?

No. Discharging the lien from the property does not concede the claim, and it does not weaken your defenses. The dispute proceeds as it otherwise would, just without your title being held hostage. Owners routinely bond around liens they intend to fight and expect to defeat.

Will I be required to post collateral?

Frequently, yes. Unlike a judgment appeal where the amount is already fixed by a court, here the claim is unresolved, and the surety is stepping in front of a dispute with an uncertain outcome. Strong corporate indemnity can sometimes carry it without collateral, but individuals and smaller entities should expect a security requirement. We will tell you where you stand early rather than at the closing table.

How fast can I get one?

Straightforward matters can be underwritten in days once we have the recorded lien and the indemnity information. The pace usually depends on how quickly collateral can be arranged. If a closing is scheduled, call us at (800) 921-1008 as soon as the lien is recorded rather than the week of the closing.

When does the bond end?

When the underlying claim is resolved, whether by settlement, dismissal, or judgment, and the claimant releases its rights against the bond. Send us the settlement agreement, release, or court order and we will exonerate the bond and stop the renewal premium. Bonds left open after a matter has settled are a common and entirely avoidable expense.

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Closing date will not wait for the lawsuit.

Call (800) 921-1008 or start the application. We can work directly with your attorney or title company.