Most states allow a contractor, subcontractor, or design professional to record a mechanic's lien against an owner's real property to secure payment of a debt. Most states also provide a fast statutory mechanism for removing that lien — a lien release bond, sometimes called a lien discharge bond, that substitutes alternate security for the lien itself. We write lien release bonds in 38 states plus the Virgin Islands, and we underwrite the specialized aircraft mechanic's lien release bond that runs to the FAA.
A subcontractor or supplier has recorded a mechanic's lien against a parcel of real property. The lien clouds title. It can delay or terminate a refinance, derail a sale, trigger covenants in a construction loan, or paralyze a project. The lien release bond is the immediate statutory remedy: it substitutes alternate security for the lien itself.
Once the bond is recorded, the lien is released from the property. The lien claimant's only recourse is now against the bond. Any civil action initiated to enforce the lien must be amended to substitute the bond as the subject of suit. Foreclosure proceedings — if initiated — are effectively stayed by operation of statute.
Mechanic's lien law is state-specific in a way that few other bond practices are. Every state has its own statutory framework. Bond multipliers range from 100% of the lien amount in some states to 200% in others. California uses 125% of the lien under Civil Code §8424. Florida requires Fla. Stat. §713.24 bonds at the lien amount plus three years of interest plus court costs. Texas, Massachusetts, New York, Illinois — each has its own formula, its own filing office, its own procedural requirements. The format matters as much as the substance.
Our practice is built around that statutory variation. We manuscript each lien release bond to the form required by the state of filing, drawing on three decades of underwriting these instruments. The bond that won't clear a Florida lien is the bond that wasn't drafted to satisfy §713.24's specific language requirements — not a bond from the wrong surety.
Each state-specific page covers the controlling statute, the bond multiplier or formula, standing requirements, the filing office, and any state-specific procedural quirks. State pages link to the underlying statutory text where available.
Lien release bonds are written on standard application terms. Three items start the file: the recorded lien itself (we need the recorded copy with the recorder's stamp, not a draft or notice), a brief description of the property and the underlying construction project, and a financial statement appropriate to the bond size.
For bonds under $250,000, the financial statement is typically a one-page personal financial statement from the bond principal — most commonly the property owner, the general contractor, or the lender's representative. For larger bonds, business financials and project documentation are required. Bonds over $1 million are routinely underwritten and routinely issued; for very large industrial or commercial projects we have written single bonds in the eight-figure range.
The bond is not typically collateralized for principals with conventional financial position. Strong indemnity from the property owner or principal contractor is the usual security. For non-standard files — credit-challenged principals, contested lien amounts, principals whose financials don't comfortably support the penal sum — collateral is available in three accepted forms: cash held by Surety One, an irrevocable letter of credit from a federally insured bank, or U.S. Treasury securities (for bond penalties over $5M). We do not accept real estate as collateral, which is appropriate given that real estate is the underlying subject of the dispute.
Once issued, the bond is filed with the county recorder in the county where the lien is recorded — not with a court. This is the defining procedural feature of lien release practice: it is a recording-based remedy, not a judicial one. The recorder accepts the bond for recording, the lien is released from the property by operation of statute, and the principal is required to notice the lienholder of the bond filing within whatever window state law prescribes. We provide every principal with a state-specific notice template at issuance to ensure compliance.
Because mechanic's lien practice is the dominant volume in our defendant-bond book, we have manuscripted bond forms on file for every state we write. The form is drafted to the statutory language, accepted by the high-volume recorders in each state as a matter of routine, and supported by Power of Attorney executed under the surety's certificate of authority in the relevant state.
Send the recorded lien and a brief description of the property. Our underwriters open the file and respond immediately, 7/52/365. Same-day issuance is standard.