A Release of Lien Surety Bond is a surety bond required of owners in certain construction projects. A lien is typically filed by a contractor on the owner’s property when they are in dispute with the owner over payment for services provided. The lien is a means by which the contractor seeks to take the property of the owner by force of law and eventually foreclose it in order to secure the value of the services or materials that they have added to the property. 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 dispute in court.
These are also known as Mechanics Lien Release surety bonds.