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.
Garnishing wages in the state of Texas can be more difficult than in other areas of the country. While every state must abide by Federal Law, Texas is one of the few states where the garnishment restrictions are even tougher at the state level. Before garnishing a person’s wages it is important to know what is required, including the posting of a garnishment bond.
Only Allowed In Certain Cases
Taking wages directly from a worker’s paycheck is serious business. Federal laws limit how much can be garnished out of wages to ensure the person who is being garnished still has enough to live on (pay rent, buy groceries, e.g.). In Texas the only way a creditor can garnish wages is if the person owes child support, student loans, taxes, or alimony.
One of the provisions a plaintiff must take in a garnishment case is a garnishment bond. This type of surety bond proves to the court that the garnishment is not being done with ill intent, but simply to recover owed funds. The bond amount usually covers the overall amount which is being attached to their wages.
In court cases a judge is going to check on a plaintiff’s right to make a wage attachment. Having the garnishment bond in place is a good way to show the judge that the action is not being taken lightheartedly. It proves that the plaintiff is prepared to make it right should the garnishment be deemed wrong.
Any questions about a garnishment bond or other type of surety bond in Texas can be answered quickly and efficiently by a member of the Jurisco staff. Our lawyer trained team has extensive knowledge about Texas and its requirements of bonding in court cases. We can help make the garnishment process as seamless as possible for all involved parties.
Custodian of Veteran bond in Texas work similarly to guardianship bonds in that they oversee the assets of another person. However, the two cannot be interchangeable as the custodian of veteran bond deals solely with veterans of the United States armed forces. While guardianship bonds go through Texas probate court, parties overseeing a veteran’s estate are channeled through the Department of Veterans Affairs (VA). Today we will talk about why a custodian of veteran bond in texas required, its associated cost and how to fill out an online application.
Does the VA require a custodian of veteran bond?
Veterans Affairs may require a custodian of veterans bond, but a Texas court may also step in to enforce the measure. The surety bond is necessary to fully protect the assets of the veteran whose estate is being watched after. You can find a complete list of Texas locations for Veterans Affairs online.
Why would a veteran need a custodian for her/his estate?
The naming of a custodian only occurs when a veteran is deemed incapacitated. Usually a veteran is considered incapacitated due to mental illness, a physical illness, disability, chronic drug use or advanced age.
What are the responsibilities of custodian?
The person named custodian must properly handle all funds received for disability, time of service, etc. He or she is responsible for ensuring the funds are not misspent and that the veteran is taken care of.
How much does a custodian of veteran bond cost?
The cost of all surety bonds depend on various factors including the wealth of an estate, the credit history of the custodian and special state requirements for the bond. A surety bond expert at Jurisco can discuss your particular requirements to give you an idea of the amount.
Can I fill out a bond application online?
Yes, Jurisco makes it easy to fill out a custodian of veteran bond application online. Should this not be the best method for you, our office can fax over a surety bond application today.
A supersedeas bond in Texas covers the cost of a money judgment and court fees, in order to stay a judgment during an appeal process. Without using a surety bond, a defendant is required to immediately settle the judgment with the plaintiff. Clients may be hopeful that they will not need the appeal process, some refuse to prepare for its inevitability, but a supersedeas bond should be a priority.
Applying, being approved, and actually writing the supersedeas bond takes time. Since the judgment is effective as soon as it is issued, a client in Texas needs to plan ahead. Obtaining a supersedeas bond (this may be referred to as an appeal bond in certain Texas cities) should be done before a ruling is made. This way the defendant is able to immediately stay the judgment and move forward with their appeal.
Why required Supersedeas Bond in Texas?
When a judge and/or jury finds in favor of the plaintiff and grants a money judgment against the defendant, the court expects that order to be carried out dutifully. However, the court also understands and respects the defendant’s right to appeal or protest the decision. While this legal right is upheld, it does not overshadow the responsibility the defendant has to the initial court ruling.
A supersedeas bond works like a financial guarantee covering the full amount of the judgment plus all related court cost. Since the bond stays the execution of the judgment the defendant can carry on the appeal without having to worry about paying the full settlement to the judgment holder.
This may seem like a cheaper way out for the defendant. Certainly there have been cases where individuals and businesses have used the appeal process to delay payment. But requiring the bond insures the ruling will be upheld and payment made.
Cost of Surety Bond
The amount of a supersedeas bond in Texas is easy to compute: if the judgment is under $40,000.00 the bond must be double the judgment amount. If the judgment is over $40,000.00 the bond must be 150%. For individuals this amount could be in the thousands of dollars, while major corporations face million dollar payouts. This means the cost is going to fluctuate from case to case, as well as being dependent on local regulations.
To receive a price for a supersedeas bond and to discuss your bonding needs, please contact Jurisco today.
“Personal Representative Bonds, also referred to as Administrator or Executor Bond) guarantee the faithful performance of the Personal Representative in their duties to handle an estate.”
While this gives an overview of why the bond is required, we know our clients may want more background on executor bonds. Today, we will look at Executor Bond in Texas and its state regulations.
Executor bonds are mandated by the state of Texas for whoever serves as administrator or personal representative of a decedent’s estate. The executor is charged with properly settling an estate and protecting its assets. Other responsibilities including notifying all beneficiaries and heirs named in the will, handling a creditor’s claim to an estate, paying taxes, and filing all appropriate forms. The court requires a surety bond to protect the estate and its creditors in the event these actions are not carried out dutifully.
The presiding judge will set the amount of the surety bond. Typically a hearing is held to discuss the amount of cash necessary to operate the estate (business, farm), how much revenue the estate is expected to draw within one year (dividends, interest), the value of assets (stocks, securities), as well as estimated debts (money owed by ward). Based on that amount the judge determines how much the bond amount should be to protect all creditors.
Texas law states that all executors must be bonded, however, this law is not absolute. There is no need for a bond when either a) an administrator puts up cash collateral or b) the need for a bond is waived by the decedent in a will.
“§ 195. WHEN NO BOND REQUIRED. (a) By Will. Whenever any will probated in a Texas court directs that no bond or security be required of the person or persons named as executors, the court finding that such person or persons are qualified, letters testamentary shall be issued to the persons so named, without requirement of bond.”
(b) Corporate Fiduciary Exempted From Bond. If a personal representative is a corporate fiduciary, as said term is defined in this Code, no bond shall be required.”
The presiding judge makes a final ruling on the necessity of an executor bond. Even if a will includes a provision claiming a bond is unnecessary, a judge may feel it is necessary to protect the full interest of the creditors of an estate.
One of the benefits of using a bond instead of cash is limiting expenses. With a bond, a client only has to pay a percentage of the bond amount, a minimum of $100. Alternatively, a client would have to prove he/she could financially cover the estimated value of the estate. This could be difficult. To discuss benefits of surety bonds and the cost of an executor bond further, contact Jurisco.
Money Judgment Appeals are typical across the United States in a variety of circumstances. A plaintiff may seek damages in an automobile accident, loan repayment, or even medical bills. There are also suits where courts award plaintiffs large sums of money, often millions of dollars, for safety hazards, product mishaps, and defamation of character. No matter the reason for the judgment, the defendant is responsible for seeing the money is paid to the plaintiff even if they wish to appeal the decision.
States mandate supersedeas bonds for appellants to qualify for re-trial by a higher court. A supersedeas bond secures and suspends execution of the judgment already awarded. The party seeking an appeal to a money judgment must post collateral or a bond with the court. This surety bond, often referred to as an appeal bond, satisfies this requirement.
Surety Bond Definition
A supersedeas bond guarantees full payment of the judgment should the appealing party lose its appeal. While the defendant has the legal right to appeal any decision by the court, it does not override the duty to protect other parties involved in the case including those awarded a money judgments. The court has a responsibility to ensure the judgment will not be delayed with frivolous appeal attempts. This surety also covers court cost and interest as well.
New Jersey and Delaware are the only two states that do not require a supersedeas bond when a Money Judgment Appeals. All other states require a surety or full payment of the awarded amount while the appeal process plays out. In some instances, a state court can override the bonding stipulations if both parties come to an agreement preventing the necessity of bonding. Courts may also waive a supersedeas bond in cases involving child support and require payment regardless of appeal.
Every state uses certiorari, a mandate from a superior court calling up for review from an inferior court the certified records of a particular case. Using this process, courts will determine bond requirements such as cost. States like Florida, Georgia, Texas and California will include a percentage of the judgment amount, or statutory interest rate, when determining the bond amount. In California, for instance, the supersedeas bond amount must be 150% of the judgment amount, whereas in Florida, the amount may include two years of statutory interest for those fees.
Supersedeas Bond Advantages
A supersedeas bond may appear to be a hindrance in the appeal process; however, it actually benefits the appellant. Supersedeas, meaning to “take place of,” suspends the execution of the money judgment. Now the defendant doesn’t have to pay out of pocket and then later try to recover that sum should he/she win the appeal.
The seizure of defendant’s property is also stayed using this bond. Should the judgment call for the transfer of ownership of a house, vehicle, artwork, et cetera, the defendant would be allowed to maintain possession of the property.
Posting collateral is one way to replace a supersedeas bond, but this is not nearly as beneficial as using surety bonding. Here are a few benefits of using a bond rather than depositing collateral/cash with the court registry:
- On average, courts charge a sliding scale to hold the money. This is 2% in most cases. The premium for a collateralized bond is 1%.
- Filing a bond automatically stays the execution of the judgment. Without the bond you must file a separate motion to stay.
- Many states will require a smaller bond than if the money is placed with the court. For instance in CA if a corporate surety bond is used to secure the judgment the bond amount is 150% of the judgment. If collateral is placed with the court’s registry, it must be 200% of the judgment.
- Fortune 500 companies and large insurance companies can qualify for rate credits as well as acquire the bond without collateral.
Using a surety bond may be the best route to take depending on the situation. Discussing the matter with a professional at a surety bond company is a good way to determine if a supersedeas bond applies to your needs.
Choose Best Surety Bond Company isn’t a decision taken lightly. As a nationwide surety bond provider, Jurisco knows firsthand that it doesn’t matter which state you are in, people want a qualified bonding company. Courts from California to Georgia, and all the states in between, require surety bonds to protect defendants, plaintiffs and even beneficiaries from a financial loss. Bonds including a supersedeas bond, garnishment bond, and guardianship bonds are mandatory and differ state to state. With the right help, clients can avoid high-risk bonds and high prices.
How to Choose Best Surety Bond Company, consider the following:
- Expertise and background
- Speed of service
- Surety bond rates
A simple Google search can reveal 100s of companies claiming to be the best and most reliable. With the right keywords, any business may appear credible, so it’s important to know the company’s background. How long have they worked in the surety bond business? Do they specialize in court bonds? Can they tell you how license and permit bonds are different in Texas and Illinois? Understanding their level of expertise will help you gauge your confidence in whether or not the surety bond company can handle your needs.
The level of service you receive should always be a deciding factor. Not only is professional service important, it should be mandatory. Will an automated machine answer your questions or a real person? How quickly will you receive feedback once you fill out a court bond application? Does the company have a headquarters or do they operate strictly online? At Jurisco, our bonding experts are trained by lawyers to deliver the best level of service possible. We don’t recommend our clients accepting anything less.
Surety bond rates are always a factor when reviewing a surety bonding company. Bond rates are determined by a variety of criteria. Be sure to find a surety bond company that considers all the factors instead of making a baseline price that will have you paying more in the end. People with low credit scores want a company that will minimize the risk of bad credit, as this can cause an increase in court bond cost. The bond writer should clearly explain the bond rights and responsibilities as well as all cost associated with each bond.
If you have a question about a particular surety bond company, and how they differ from Jurisco, feel free to contact us. We always encourage questions about our expertise in court bonds and how we help clients in every state.
License and permit bonds in Texas cover a range of activity including selling airline tickets, facilitating the purchase of a yacht and handling the mortgage of a home. Today, Jurisco’s surety bond blog reviews three common types of license and permit bonds in Texas: mobile home installer/dealer bond, title agency surety and fidelity bond, and the airline reporting commission/seller of travel bond.
Mobile Home Installer/Dealer Bond
Texas requires mobile home installers and dealers to guarantee the installation of mobile home with a surety bond. A mobile home installer/dealer bond protects the buyer from being misled or having their funds misused. This surety bond is also an assurance that the work is completed and done correctly and that the buyer is protected in the event it is not.
Title Agency Surety and Fidelity Bond
A couple closing on a house is excited about owning their first home. They have the monthly payments all planned out and even found the right homeowners insurance policy. All that’s left is to pay the closing cost and transfer the title. They don’t expect the title company to misuse or steal the funds and without a surety bond protecting them they face a financial risk. Texas courts require a title agency surety and fidelity bond guaranteeing the title company will not mishandle funds associated with the closing of real estate.
Depending on the situation, Texas may require a title agency surety and a fidelity bond, or one or the other. If you are unsure of your requirements, contact Jurisco to speak to a surety bond expert directly. The cost of a title agency surety and fidelity bond depends on the amount of closing costs.
Airline Reporting Commission/Seller of Travel
Travel agents in Houston, Dallas and Fort Worth are required to have an airline reporting commission bond (also known as a seller of travel bond) to show compliance with their licensing statue. Texas requires the travel agent to comply with all licensing statutes and the Federal Aviation Administration. Without this bond, the agency is in violation of licensing statute, which could lead to fines, or loss of licenses.
As always, if you have a question about any of these licenses and permit bonds, or any other type of surety bond, Jurisco is here to answer your questions. Complying with license and permit requirements is imperative for every Texas business. To avoid hassles over compliance, let Jurisco assist you with all your surety bonding needs.
It’s the start of a new year and that means making resolutions, life changes. Life happens quickly and doesn’t last long enough. Building a strong financial estate can seems as it takes long enough, but that hard work can be wasted with the misuse of funds and assets by an Administrator. An Administration Bonds helps maintain the integrity of an estate when you can no longer keep watch.
Texas residents may hear Administration Bonds referred to as Executor bonds or Personal Representative bonds. Despite the name, they all three have the same purpose: to guard against fraudulent or imprudent handling of a decedent’s estate. Paying off debt, contacting creditors, notifying beneficiaries and handling tax issues all fall under the realm of an Administrator’s responsibility. When these duties are not properly met, the beneficiaries could be on the hook for the newly created debt.
An Administration Bonds protects the worth of an estate by giving beneficiaries and creditors the ability to hold the administrator accountable. Without this bond, it might take years, if ever, for beneficiaries to recover. These bonds are so important that even when last will and testaments include a clause waiving the Administration Bonds, a Texas court may still require surety bonding.
Are you trying to determine if you need an Administration Bonds? A Jurisco professional can answer these questions for you by either email or phone. We also have applications online that explain the process. It may be hard to think about not seeing another year when at the start of a brand new one, but it’s not morbid to want to protect your loved ones. It’s not pessimistic to want what’s best for them after you’re gone.