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First, a lien must be filed against the property. Then, a bond (or a cash deposit) is filed with the register of deeds or court, as a substitute for the encumbered property. The amount of the bond may vary based on state statute, though frequently is 110% to165% of the amount of the lien.
When your contractor dispute has led to your home having a lien filed against it, you do have legal options. Negotiate with the contractor who placed the lien (the "lienor" to remove it. Obtain a lien bond to discharge the lien, or. File a lawsuit to vacate the lien.
Under Iowa's Motor Vehicle Service Trade Practices Act, you have certain rights to help you avoid higher than expected repair charges: You have the right to receive a written or oral estimate for any repair that is expected to cost more than $50, and shops must notify you of this right.
Pursuant to the section (b), "A mechanic's lien may be discharged at any time by submitting a bond to the administrator in twice the amount of the sum for which the claim for the lien is posted, with surety or sureties, to be approved by the administrator, conditioned for the payment of any sum for which the claimant ...
To perfect a mechanics lien in Iowa, it must be filed electronically through the Secretary of State Office Mechanic's Notice and Lien Registry (MNLR). Preliminary notices can be filed through the system as well.
If you wish to transfer a lien to bond, you must provide a recorded copy of the Claim of Lien being bonded together with cash or a cashier's check pursuant to Chapter 713 of the Florida Statutes.
File a Lawsuit to Vacate the Lien: Finally, property owners in North Carolina can always fight the lien once the contractor files a lawsuit. In North Carolina, a contractor must file a formal lawsuit after filing a mechanic's lien.
New York Lien Law § 19(4) allows a lien to be discharge by filing a bond securing up to 110% of the amount claimed. A mechanic's lien discharge bond is executed by the principal, which requests the bond, and the surety, a financial services company which guarantees payment if the lien claim is proved.