Release of Mechanic’s Lien Surety Bonds are required for those in charge of construction projects in the event of a mechanic’s lien being issued by a contractor.
A mechanic’s lien can be filed during a dispute between a contractor and property owner regarding payment for service provided. This allows the contractor to seek out, and claim rights to, the property of the owner, in an attempt to recoup the full value of their agreed upon compensation or costs of spent materials through its eventual foreclosure and sale. Upon the eventual resolution of the legal proceedings, the issuing of a Release of Mechanic’s Lien Surety Bond then annuls the lien, allowing the property owner to reclaim full possession of their assets. These surety bonds assure that the contractor who originally filed the mechanic’s lien be fully awarded all payments due to them, in accordance with the court’s ruling.