Mechanic’s lien is a mechanism used by contractors and suppliers to force payment of outstanding monies due from the owner, tenant or land owner. A Mechanic’s Lien will assure that the owner completes all required payments to the contractors participating in the project. It is also called a material man’s lien or supplier’s lien.
If a contractor allegedly receives no payment for products or services, he or she can file a Mechanic’s Lien which prevents the other party from selling or transfer property and it allows the contractor to sue the other party.
With a Mechanic Lien Bond, the surety company guarantees the claim in the event that the court enforces the payment of the claim. It guarantees that the payment will be made if the lien is not successfully contested.
If a subcontractor has put a mechanic’s lien on your property, you can get a Discharge of Mechanic’s Lien Bond to remove the lien from your property.
A discharge of Mechanic’s Lien Bond allows property owners to do with their property what they would if a lien was not present: sell the property, get further remodeling done, etc. In a way, it works as an extension of credit. The bond proves that the property owner has sufficient funds to pay the people involved.
The word discharge can cause some confusion. A Discharge of Mechanic’s Lien Bond does not extinguish the mechanic’s lien entirely. It discharges the lien from the property and attaches it to the bond.
The bond is usually issued at a percentage over the lien amount, depending on the state in which the lien was placed.
There are a few types of bonds that tie in with construction. Each of them serves an entirely different purpose.
Two common people that need to obtain a discharge bond are the property owner and the contractor who is obliged to discharge any mechanic’s liens filed by suppliers or subcontractors
The release of lien bond allows the owner to discharge the mechanic's lien and returns the legal right to sell or deal with the property to the owner.
The bond guarantees the contractor who placed the lien any payment that is still due to them with interest and cost should they win the case. These are also known as Release of Lien surety bonds.
How to Get a Mechanic's Lien Bond FAST!
Finally, if you would like to speak to a live customer service representative to walk you through the process of applying and getting approved for a bond today, we are here to answer all questions. And our professionals are committed to easing the process for you. call us at (800) 921-1008, Live Chat with us Below, contact our Bond Manager at Bonds@BFBond.com or APPLY NOW!