Lis Pendens Surety Bond
In Latin, Lis Pendens means suit pending, and it basically means the same thing in the courts. Specifically, it refers to a lawsuit intended to block the sale or financing of a property. Individuals have the right to block property deals and plead their case in a court of law, but first they may need to obtain a lis pendens bond. This guide breaks everything down.
What is a Lis Pendens Bond?
In a lawsuit over property, either the defendant or the plaintiff may potentially use Lis Pendens to halt any sale and retain the title to the property. However, if a judge rules against the party that blocked the sale and that party refuses to adequately compensate the other party for applicable losses and expenses, bonds come into play. The aggrieved party may file a claim against the bond seeking financial compensation. In this way, bonds hold people accountable and keep frivolous Lis Pendens claims from obstructing the business of the courts.
Are there different types of Lis Pendens Surety Bonds?
To be technical, a Lis Pendens bond applies to the plaintiff, whereas a release of Lis Pendens bond applies to the defendant. They essentially work the same way, they simply have different names depending on who is the bonded party.
Who should get a Lis Pendens Surety Bond?
Anyone required to do so by the court. If you plan to use Lis Pendens as part of your legal strategy, expect to need an accompanying bond. Since litigation cannot proceed until you obtain a bond, find a surety to work with ASAP. Viking Bond Service issues Lis Pendens bonds in all 50 states and can get you a quote in a matter of hours.
Who are the parties involved in a Lis Pendens Surety Bond?
Despite the fact that only two parties are involved in the real estate dispute, bonds involve a third party as well:
- Principal - The bonded party and the one responsible for either paying claims or paying back the surety for claims it settled.
- Obligee - The person entitled to file claims against the bond. If those claims prove valid after investigation, the surety guarantees payment.
- Surety - The company that issues the Lis Pendens bond and guarantees payment. When the surety does pay, however, the principal must pay the surety back.
How much does a Lis Pendens Surety Bond cost?
The courts determine the bond amount based on what court costs and legal fees are likely to amount to. The premium for that bond is only around 5% of the total depending on the applicant's credit. Therefore, a bond worth $10,000 may cost the principal as little as $500 or less.
How long does a Lis Pendens Surety Bond stay valid for?
In most cases, these bonds stay active for one year. It could be shorter if the litigation terminates within 12 months, or it could be longer if it drags out, in which case bond renewal may be necessary.
How are claims handled for Lis Pendens Surety Bond?
When someone makes a claim against the bond, the survey investigates whether it's valid. If so, the surety asks the principal to pay, but if that party refuses, the surety steps up to pay. Now, instead of owing the obligee money, the principal owes the surety the same amount, probably with costs added.
How to apply for a Lis Pendens Surety Bond?
With Viking Bond Service, it's quick and straightforward. Simply complete our standard bond application, provide a copy of the court order requesting the bond, and turn over any supplemental documents the underwriters request. You will receive a quote within 48 hours, and once you pay the premium, you receive a document to provide the court.
Viking Bond Service - For All Judicial Bonds
When a property sale seems imminent, you don't want to waste time. Count on Viking Bond Service to check all the boxes while moving as quick as possible. Our team is here to answer all your questions now, so contact us through the form on this page or call 888-278-7389.
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