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Tx Bond Form FAQ

A Release of Mechanic's Lien Bond is a type of surety bond that clears the mechanic's lien from the property. These bonds can also be called a Discharge of Mechanic's Lien Bond. By clearing the lien, the owner is free to sell or use the property for other purposes.

The simplest way to prevent liens and ensure that subcontractors and suppliers are paid is to pay with joint checks. This is when both parties endorse the check. Compare the contractor's materials or labor bill to the schedule of payments in your contract and the Preliminary Notices.

The release of lien bond allows the owner to discharge the mechanic's lien and returns the legal right to sell or deal with the property to the owner. The bond guarantees the contractor who placed the lien any payment that is still due to them with interest and cost should they win the case in a court of law.

When the lien is bonded off, the surety company (or, in the case of a general contractor bonding off the lien itself, the general contractor) is guaranteeing payment of a claim if the claimant prevails in court enforcing the claim.

In the event that the contract is breached and payment is not received, an affidavit for mechanics' lien may be filed to place a lien on the project.

The process of bonding off a mechanics lien starts after a claimant has filed a mechanics lien. After the claim is made, a general contractor or a property owner can contact a surety bond company to purchase a surety bond that replaces the value of the lien that was filed against the property.

A Mechanics Lien Release Surety Bond is a surety bond required if the owner's property has had a lien filed against it.The bond guarantees the contractor who placed the lien any payment that is still due to them with interest and cost should they win the case in a court of law.

Mechanics Lien In Texas

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