Receiving a release of lien in Florida is simple when working with a reputable surety bond company like Jurisco. A Florida surety bond expert will quickly help resolve a lien situation with their thorough understanding of state statute. By securing a release of lien Florida bond, the lien can be removed from the property or assets.
What is a lien?
A lien works as a hold on a property. The owner cannot sale the property or transfer ownership in any way. Liens are generally placed on property because of payment disputes. Florida child support cases may even result in liens.
A contractor who doesn’t pay a subcontractor may be another reason why a lien is placed on property. Even if the property owner has receipts of bill payments, the court will allow a lien until the matter is heard. One way that liens can be avoided is by having a contractor, and their subcontractors, sign a lien waiver.
Florida statute details lien causes and how they can be removed. The alleged debt can be contested in court, but until a ruling is made, the lien will stay on the property. To remove the lien, a release of lien Florida surety bond can be used.
Liens and Foreclosures
One reason to secure a release of lien Florida bond is to remove any limitations on the property. Liens may not only block the sale of a house, but they can add to the cost of foreclosure. When a foreclosed property is tangled up in liens, the fines go up, as does the stress level. This story about Florida condominium owners and liens is just one of the warning tales out there.
The release of lien Florida bond does not mean that the party is in fact owed money. Instead, it clears the property of a lien by standing in its place. The release of lien Florida surety bond takes the place of the lien, while giving the court time to hear the case. By having a release of lien bond, the property is once again in the clear.
Release of Lien Bond
Don’t let a lien cause problems. Remedy the situation with the help of a surety bond professional. Contact Jurisco today to learn more about release of lien Florida requirements.
A release of lien bond is a type of surety bond for an estate or company who owes money for labor, material cost, and other lack of payment scenarios. Typically, a release of lien bond is filed after a construction company or subcontractors who worked on a project have placed a lien on the property. Once a lien is placed on an estate or property, it must be removed before additional work can be completed or the property can be sold.
Failure to Pay Means Liens Succeed
When a construction company or employee choose to file a lien against property it is usually after all over attempts to receive payment have failed. Each state has their own guidelines to when a lien can be filed and who can file such a lien. For example, some subcontractors will find their contract between the construction company and owner rule out their ability to place a lien. Instead, the subcontractor has to go through the construction company for their disputes.
These types of property liens can cause serious problems for the estate holder. To start, the property cannot be sold if it has an existing lien. This can also cause issues with property taxes and so on. A judge can step in and remove the lien if it is found to be unjust. This can happen because the court has determined no party is owed money or if the lien was filed in an improper way (i.e. not filed within the set timeframe).
Liens Hurt Businesses
Liens happen to public businesses as much, if not more so, than they do to private citizens. When a lien is placed on a business it can cause serious issues such as failure to operate their business which leads to bankruptcy. A recent story of how a lien can affect a business comes out of Lake Tahoe where the Hard Rock Casino needed a release of lien to remove business hurdles.
How to Release a Lien
A release of lien bond is one of the fastest ways to remove a lien. Filing for a release of lien surety bond does not mean that the party admits to owing money. The surety bond is simply a placeholder for the alleged money owed.
States and courts accept a release of lien bond because it guarantees two things. One, that the owed party will receive payment if the court rules they are owed for services. Second, it clears the property of having a lien so work can continue or the property can be sold.
Jurisco can assist with a release of lien surety bonds in every state. A team of surety bond professionals is on hand to answer any questions about liens and how they can be removed.
Contact Jurisco about a release of lien bond today to learn more about surety bonds and how they may help your case.
It is important to know what Texas release of lien options are available when dealing with a lien. Texas imposes strict mechanic lien deadlines among other requirements. Making the wrong move is going to come with a cost.
One of the best things to do for a Texas lien is to transfer the lien to a surety bond. This is called a release of lien bond. Release of mechanic’s lien is another common term for the bond.
A Texas Release of Lien Bond
A Texas release of lien surety bond may be used for any liens. Whether the lien is on a house from a contractor seeking payment or on a vehicle that wasn’t paid off, a surety bond is accepted by the court to secure payment.
The release of lien bond fully covers the amount being disputed. It is essentially a transfer of a lien on the property to a surety bond. The bond represents the debt owed. Since the surety bond protects the alleged owed-party, Texas courts see a bond as a good measure.
The bond is not an automatic payout to the owed party. A Texas release of lien bond shows the court that there is an intention to handle the disputed funds. It does not take the surety bond as an admittance of wrongdoing. The bond simply proves that the dispute will be handled and that there isn’t a need to involve property.
Texas Transfer of Lien Requirements
Courts and local municipalities deal with liens frequently. Residents in Dallas, San Antonio, Houston, Fort Worth and Austin all have the same ability to secure a lien when they are owed money.
When a lien happens things can spiral quickly. Take the Tex-Mex restaurant chain, El Chico Restaurants. An error in paperwork resulted in a tax lien on the property. Now there is a back and forth battle trying to clear up the issue. This hasn’t helped their business.
Texas release of lien mandates must be abided by. The Texas Department of Motor Vehicles even has their own set of criteria for removing a lien. Working with a Texas surety bond expert like Jurisco guarantees a thorough knowledge of the subject.
Get A Release Of Lien Today
Need a release of lien right now? Contact Jurisco. A Texas surety bond expert knows which Texas release of lien bond will help. Plus, there is the added benefit of Jurisco offering low surety bond rates.
A Florida release of lien surety bond is a fast and easy way to clear up a lien. Legal action can tie up property for years with a lien. Transferring the lien to a bond takes the property off the chopping block.
A Florida release of lien bond replaces the lien with a surety bond. Courts throughout Florida including Miami and Tampa readily accept a transfer of lien bond. They do this because a surety bond fully covers the amount of the lien, as laid out by the Florida release of lien statute.
Mechanic liens can lead to a loss of business and or property. In some cases, families who remodel their homes find their construction project has landed their home on the foreclosure market.
Securing a transfer of lien bond takes care of this nightmare.
Release of Lien Time Constraints
Florida release of lien mandate calls for the transfer of lien to be ratified quickly. If the transfer of lien bond comes too late then the threat of property loss remains.
Working with a Florida surety bond expert is the best way to ensure all release of lien bond issues is handled appropriately.
A Jurisco surety bond expert will make sure that all release of lien measures are met. Knowing when and how to notify the court of a release of mechanics lien helps the court accept the surety bond as a swap for a lien.
Complete A Release Of Lien Application Online
Jurisco understands the time constraints a lien can place on an individual, family, or business. Making the release of lien application available online helps make the bond process faster.
Once the surety bond application is received, the Jurisco surety bond experts typically secure the bond the same day.
Have questions about the Florida release of lien process? Contact Jurisco today.
When a lien is placed on property it can cause big problems. A release of lien bond takes the place of the lien which can help you sidestep a bad experience.
Without a release of lien bond you run several risks including:
- property being seized for payment
- the fallout of having real property sold at auction
- a difficult court experience over payment of the judgement
Courts Accept Surety Bonds For Liens
Surety bonds have been accepted by courts in every state for a long time standing. A release of lien bond is a sign of good intention that the money judgement will be handled properly.
It is important to work with a surety bond company that understands your state requirements to ensure the bond meets all mandates.
Anytime a lien is used it is best to secure a release of lien bond as quickly as possible. And liens happen probably more than you may realize.
Liens Hold Up Business
Liens can be used by contractors who did not receive payment for work done on a home. A pest control company has the right to place a lien on apartment complexes that did not pay. Even the IRS can place a lien against a business if they do not pay their taxes.
Some liens affect only one individual, but others can impact businesses, their employees, and even those who use their services. For example, a ferry ship dealing with a lien issue is preventing transport from Maine to Nova Scotia.
Using a release of lien bond allows property and mechanics liens to be replaced so businesses and individuals can keep operating.
Let A Bond Help
Not using a surety bond opens up the property being liened to seizure and sale. If a lien is in play then it is time to take action with a release of lien bond right now.
The team at Jurisco know all release of lien regulations for every state. They are easy to contact and are very knowledgeable about surety bonds.
Let Jurisco take care of a mechanics lien with a surety bond. The release of lien bond protects your property and allows you the chance to handle the judgement your way.
Section 8242 of the California Civil Code deals with the surety bond requirements and procedure for releasing of real property from a claim of lien. The bond in this case is referred to as a Release of Lien bond or, simply, a Mechanic’s lien bond. Generally, liens are filed against real property by a contractor or subcontractor. However, as an article in the California Construction Attorney’s website shows, liens can also be filed by design parties as well. This extends to architects, engineers and site planners. However, as the above referenced article explains, traditional lien rights to designers only kick in once the construction project begins. Prior to that and during the planning phase, a design professional can use a Design Professional Lien to seek remedy.
Mechanics’ liens and design professional liens are technical and can be difficult to prove or refute. It is always wise to see the consul of an experienced attorney before filing a claim. If you would like to find out more information on Mechanic’s Lien Bonds or Transfer of Lien bonds, however, please contact the Surety Bond Experts at Jurisco. One of their helpful staff will happy to prove assistance with rates, applications and general information.
We at Jurisco know that the construction industry in California is humming again. New projects, both public and private are being executed all over the state. And so largely gone are the days where shrinking fund availability leads to many unpaid (and unhappy) contractors. Largely gone but not completely. Every day in California, aggrieved contractors are using lien remedies to collect on what they are owed. The two available in this state are the ‘Mechanic’s Lien’ and the lesser used ‘Stop Payment Notice’. What many people may not know is that a Stop Payment Notice Bond must be filed along with the Stop Payment Notice. This Surety Bond protects the lender and the prime contractor from any monies withheld wrongfully. The bond must be in the amount of 125% of the claim.
What is a Stop Payment Notice Bond?
For those of you who wish to learn more about the the Mechanic’s Lien and the Stop Payment Notice remedies, please see this wonderful article: http://www.zlien.com/articles/the-differences-between-a-stop-notice-and-a-mechanics-lien/ Mr. Wolfe provides a very clear explanation; and attempting to best his efforts would be a waste of my energy. I will summarize, though. A Stop Notice is used when a subcontractor or supplier has not been paid for their goods or services. The Stop Notice requires the lending authority to withhold future payments to the general contractor in the amount described in the Stop Notice claim. This is only done, however, if the Claimant has procured a stop payment notice bond to be filed with the claim. The lender will only withhold money if the notice is bonded. (More information on the Stop Payment Notice requirements in sections 3083 and 3103 in the California Civil Code)
What else do you need to know?
I could muddy the waters by also describing the other bond that can be used as a remedy to the lender; called the Release of Stop Payment Notice Bond. But I’ll save that for another post. In the meantime, if you have any questions regarding Stop Payment Notice Bonds or any other surety bond matter, please contact the bond experts at Jurisco and an actual human being will answer all your queries.
On July 1st, 2012 a number of significant changes to Mechanics Lien Law in California went into effect. It is hard to gauge exactly how much impact these changes have had lien filings in California. A recent article By Carlos Rico in The Daily Transcript postulates that there haven’t been a significant rise or fall in the number of lien filed in the state. He goes on to say that the strength of the economy (or lack of) if the determining factor in mechanics lien filings. (See Carlos’s article here). Taking these arguments into account one could argue that . . . maybe it is too early to decide if the changes to the mechanic’s lien law will produce their intended outcome: to streamline lien filing practices so contractors can get paid for their work.
This Jurisco blog has burned of many words updating California Attorneys on the workings of the Transfer of Lien Bond; also known as a Release of Lien Bond. Changes made to the mechanic’s lien law have a direct effect on any issuing of a Transfer of Lien Bond or a Release of Lien Bond in California. The new law reduces the size of the bond required to adequately release a property of a lien from 150 percent of the lien amount to 125 percent. See below or this Linkfor text of the code)
The good news: This reduction in bond amount makes it easier to issue these bonds. Extrapolated Further: This will help contractors collect payments because a Transfer of Lien Bond (or a Release of Lien Bond) is a legal mechanism that guarantees payment of contested amount if the property owner is found to be liable for the sum.
Does all this sound like a foreign language to you? If so, don’t be daunted. It is complicated. Luckily the surety bond experts at Jurisco can help make sense of all these changes. Contact a representative today.
“8424. (a) An owner of real property or an owner of any interest in real property subject to a recorded claim of lien, or a direct contractor or subcontractor affected by the claim of lien, that disputes the correctness or validity of the claim may obtain release of the real property from the claim of lien by recording a lien release bond. The principal on the bond may be the owner of the property, the direct contractor, or the subcontractor.
(b) The bond shall be conditioned on payment of any judgment and costs the claimant recovers on the lien. The bond shall be in an amount equal to 125 percent of the amount of the claim of lien or 125 percent of the amount allocated in the claim of lien to the real property to be released. The bond shall be executed by an admitted surety insurer.
(c) The bond may be recorded either before or after commencement of an action to enforce the lien. On recordation of the bond, the real property is released from the claim of lien and from any action to enforce the lien.
(d) A person that obtains and records a lien release bond shall give notice to the claimant. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1 and shall include a copy of the bond. Failure to give the notice required by this section does not affect the validity of the bond, but the statute of limitations for an action on the bond is tolled until notice is given. The claimant shall commence an action on the bond within six months after notice is given.”