Dealing with a mechanic lien in Texas doesn’t have to be a hassle. Using a surety bond can sidestep a lot of troubles that mechanic liens cause. Working with a surety bond expert provides an easy way to take care of mechanic lien Texas situations quickly.
What Does A Mechanic’s Lien Mean?
A mechanic’s lien is a lien on a property prohibiting the sale or transfer of ownership of the property. Often times, a lien is placed on property as part of a payment dispute. Contractors deal with this issue often when attempting to collect on bills for work completed or materials bought.
The Texas Bar explains Texas mechanic lien requirements in further detail on their site. In short, a lien is a legally binding hold on property until the dispute between plaintiff and defendant are cleared up.
How To Remove A Mechanic Lien in Texas
As one can imagine, a lien can cause serious problems for individuals and businesses. For individuals still making mortgage payments, a lien may cause the mortgage holder to increase payments or apply fines. Liens can also lead to tax issues. One of the fastest ways to remove a mechanic lien in Texas is with a surety bond.
Using a surety bond allows for the alleged debt to be covered while removing the lien. Posting a mechanic lien Texas bond is not an admission of guilt. In short, the surety bond simply takes the place of the lien. A transfer of lien bond is proof to a Texas judge that the issue is being handled seriously. It doesn’t take long for a judge to rule on the lien and accept the surety bond.
Ways to Avoid A Lien
One way to avoid a lien is to make a contractor and/or subcontractor sign a lien waiver. Some contractors make subcontractors sign such a waiver. The waiver rules out the threat of a lien. Meaning the owed party would have to seek other avenues to gain payment.
After a lien has been filed there may be ways to dispute it. Timing is one of the main reasons why liens are struck down. Mechanic lien Texas requirements include serving the lien within 5 days of filing the application. Judges in Texas make sure that this and other procedures are followed properly when determining the validity of a mechanic lien.
Have more mechanic lien Texas bond questions? Contact Jurisco today to speak with a Texas surety bond expert about mechanic lien bonds. Jurisco works to provide same-day service whenever possible, while offering low surety bond rates.
A mechanic lien Texas situation may arise from a contractor not being paid for services. To recover the money they feel they are owed they will put a lien on property.
Having a lien placed on property can cause several problems if not addressed right away. Houses can be foreclosed on, automobiles can be repossessed, and other items may be seized by Texas law enforcement.
Removing A Lien
To release a mechanic lien a surety bond must be secured to cover the amount in question.
A mechanic lien Texas surety will financially cover the amount of money claimed to be owed by the defendant. This takes the property and other items off the table to be held responsible for the owed payment.
Using a surety bond to release a Texas mechanic lien is one of the most efficient ways to handle a lien. Knowing the limits of a mechanic lien Texas bond helps clear up the issue without adding more trouble to the mix.
Texas courts accept the release of mechanics lien bond as a way to prove that the matter will be resolved without further financial loss.
Who Can Request A Mechanic’s Lien?
Contractors are known to place liens on property but it is important to remember that people working for the contractor can also request a lien. Ultimately, it is the client’s responsibility to make sure people are paid for the work.
They give the money to the contractor with the understanding that this money will be used to pay for work. If a subcontractor or employee is not paid then they can seek the money from the client.
Having a contractor and subcontractors sign a lien waiver before work begins is a good way to protect against needing a bond.
A Surety Bond Quickly
Let Jurisco assist you with all your mechanic lien Texas requirements, questions and concerns. Don’t waste time and be unprotected.
Jurisco knows exactly what is mandated for a mechanic lien Texas bond. The staff meets your needs quickly delivering a solid, secure mechanic lien Texas surety bond.
Lis Pendens Bond in Delaware affects all types of property, even those in foreclosure proceedings. The amount of houses affected by lis pendens has grown so much that ForeclosureData.com has a page dedicated solely to lis pendens listings in Delaware. So why and how does lis pendens affect the sale of a property? Today that’s what we will discuss. As always, if you have something you’d like to add to the conversation leave a comment below or send us an email.
What is Lis Pendens Bond?
Latin for “suit pending” lis pendens secures a plaintiff’s right to specific real property. For instance, if a defendant is selling a house in Brandywine, DE and the plaintiff believes he or she has a right to that property (or to a portion of the proceeds from the sale) they would use a lis pendens to block the sale of the property.
Lis Pendens Bond Requirements
Anyone can file a lis pendens against real property without a bond, however if the defendant feels the lien is wrongful they may demand that the plaintiff post a bond. The court recognizes the plaintiff’s right to protect their interest, but that doesn’t overshadow the defendant’s rights. lis pendens bond in Delaware requires all plaintiffs to use to cover any type of financial loss the defendant may face should the lis pendens be deemed unlawful or wrongful.
The bond proves to the court that the plaintiff is not filing the lis pendens in bad faith. Once the bond is approved then the property holder, as well as those involved in the selling/buying process, will be notified of the lis pendens action.
Here’s a look at statue concerning lis pendens bond in Delaware (please note that mandates may differ within the state so please ask your Jurisco bonding expert about your particular area be it Dover, Greater Newark or Wilmington, DE):
(a) In any action instituted in any court of this State having civil jurisdiction or in the United States District Court for the District of Delaware, any party asserting a claim, the object of which is to affect the title to, or enforce an equitable lien on, real estate may, after filing of such claim, file in the office of the recorder of deeds of any county in which all or any part of the affected real estate is situate a written notice of the pendency of the action, which shall be under oath, and shall set forth:
(1) The court in which the action was brought, the caption of the action and the civil action number;
(2) The object of the action or the affirmative relief sought;
(3) A legal description sufficient to identify the property affected; and
(4) A designation of the names of each party against whom the notice is directed to be indexed.
(b) No notice of pendency shall be filed under this chapter:
(1) On a claim relating to real estate which, if sustained, would entitle the party to recovery solely of money or money damages; or
(2) To enforce a mechanic’s lien or to foreclose upon a mortgage at law, which actions shall continue to be governed by the notice procedures of this Code specifically applicable thereto.
67 Del. Laws, c. 59, § 1.;
To learn more about Lis Pendens Bond in Delaware and its associated cost please contact Jurisco today.