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If your property is liened, you may be able to "bond around" the lien

Posted by attorney David von Beck

A properly perfected lien claim attaches to the real property that is identified in the lien. This means that the property owner cannot refinance or sell the property without taking care of the lien. In many states the owner or general contractor can, however, purchase a bond worth 150% of the lien amount and file it with the recorder's office. This will have the effect of removing a lien from the title. Many contractors and suppliers view this as a bad development, because it may relieve some of the pressure on the owner to resolve the lien claim quickly. Thus the property owner or the general contractor may threaten to bond around the lien, in an attempt to pressure the claimant to settle. In reality, however, bonding around the lien, or getting a lien discharge bond, is often good for the lien claimant, as a bond may provide a faster and less expensive legal remedy.

Additional resources provided by the author

Check our website, www.levy-law.com, or contact us for more information about possible steps to take if a company or individual has filed a lien on your property in Washington, Oregon, or California.

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