As part of the series to explain how surety bonds work in different states, today we look at Release of Lis Pendens bonds in California. Florida is the “Sunshine State” but you’d be hard pressed to find a sunless day in California. Fortunately, the sunny disposition in California allows an easy process to file a release of lis pendens.
What is a release of lis pendens bond?
To understand a release of lis pendens, one must understand why a lis of pendens is used in the first place. A lis of pendens is a legal action affecting the title or interest in property. The construction company contracted to build a house on the property, for example, may use a lis of pendens if the contract goes unpaid. This action would prevent the sale of property. A release of lis pendens is a bond covering the cost of the lis of pendens to release the property back to the defendant.
What type of property does a release of lis pendens cover?
Lis Pendens cases may only involve what is termed “real property” meaning no car and jewelry, only buildings, land and the like.
Release of lis pendens bonds in California is the only option?
A release of lis pendens is not mandatory in California. The defendant may wish to fight the legality of the lis pendens without a bond. However, if the sale of property is contingent on the status of the lis pendens, a release of lis pendens allows property to be sold before a court issues a ruling.
Will this surety bond protect against damages?
The release of lis pendens bond in California substitutes the bond for the applicable property. There is a fixed dollar amount for the bond, but this does not limit the court when awarding damages to the plaintiff. A court may find the damages are worth more than the bond and the plaintiff would be entitled to the larger amount.
How much does a California release of lis pendens bond cost on average?
Cost of release of lis pendens varies based on value of the state and local municipalities making it difficult to have an average. A bond may cost more in Los Angeles than in Sacramento based on property value alone. The court’s decision to include interest and court costs also affects the bond amount. Both release of lis pendens and lis pendens are high-risk actions but the right preparation can relieve the tension and help with costs.