Bond Amount
Based on Court Requirement
Underwriting Criteria
Review of applicant's personal credit report, financial stregth and circumstances surrounding dispute
Requiring Entity
County of the Superior Court in which the bond is filed
Who is Required to Secure this Bond
A Release of Lien bond is required by anyone who wishes to discharge a lien against real estate. A lien is generally filed by a person who has done work or furnished materials for a building’s construction or other property improvements.
Why is the Bond Required
The bond is required to discharge any liens that may have been placed on the property. A piece of property or real estate cannot be sold unless all liens have been released or a Release of Lien bond has been furnished. These bonds are usually required of general contractors to discharge liens placed on property by subcontractors or suppliers.
Who is Protected Under this Bond
The bond is made payable to the claimant (the party who filed the lien against the property) and guarantees that payment will be made to the claimant if the claim is deemed legitimate.
Underwriting Process
In order to apply for a Release of Lien Bond, the following documentation must be provided:
- Completed application
- Copy of the court order indicating plaintiff’s name, defendant’s name and case number
- Personal financial statement
- Detailed explanation regarding the dispute and any supporting documentation
Once this information has been received, it will be reviewed and a response as to approval will be provided within 1-2 business days. As these bonds are considered somewhat hazardous, the applicant may be required to post collateral.
What you Need to do Once you Have your Bond
Once the bond has been received by the applicant, it must be filed with the County where the lien was filed. The bond will remain on file with the County until the matter is resolved. The applicant must supply documentation indicating that the liability under the bond has been terminated in order to have the bond cancelled.
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.