A lien release bond may be required to remove a lien on a property. It is designed to replace the property as security for the lien.
A lien may be placed on a property due to non-payment to a supplier or contractor involved in the construction or some other work completed on the property. For the lien to be removed from the property prior to satisfying the lien holder’s claim, a judge may require a lien release bond be put in place.
The lien release bond allows for the removal of the lien on the property. The lien is instead attached to a surety bond. The property owner is typically the principal on the bond, the party ultimately responsible for satisfying the lien. The responsibility is not shifted when the bond is put in place. The bonded property owner is still financially liable to the surety in instances where the surety has to pay a claim on the bond.
A release of lien bond amount is determined by the court. The required bond amount is based on the amount of the lien. The bond amount set by the judge may exceed the amount of the lien. It’s not uncommon to see bond amounts set at 110% of the lien’s face value.
The cost of a release of lien bond is very much tied to the credit and financial status of the principal applying for the bond. Expressed as a percentage of the bond amount, the typical price range for the lien release bond is from 1% to 5%. However, quotes for this bond can come in higher than the stated range. As with most surety bonds, the better the credit and financial standing of the principal, the lower the quotes will be.
In some cases, quotes may contain collateral. A surety may provide a quote with a lower rate for a collateralized release of lien bond. In these cases, some form of collateral security, acceptable to the surety, is used to help mitigate the risk and can allow the surety to provide a lower rate.
To submit a release of lien bond request, an individual will need to provide the following information:
Viking provides release of lien bonds nationally and has for over a decade. Our agents work to gain the best quotes and terms for our clients. Our agents will let you know exactly what is required for your specific bonding request. Call us to get started today.
Viking can get you through the Freight Broker bonding process fast. From application to quote to bond in place, we keep it simple.
Getting a Surety Bond is not difficult. Viking can guide you from start to finish. Learn what is involved in the bonding process.
Viking offers fast quotes and great rates for Auto Dealer Bonds nationwide.
A Performance Bond may be required to bid for, or accept a contracted job. Learn about Performance Bonds here.