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.
Liens can create chains that blocks property from being sold or work from being completed.
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 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.
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.