Connecticut Release of Lien Bond
AmeriPro Surety Bonds | 844-589-9732
Release of Lien Bond
A release of lien surety bond, or a Connecticut mechanic’s lien bond, simply put, transfers a mechanic’s lien from a property to a surety bond.
Filing a release of lien surety bond allows for several things which benefit both the lien holder and the person who owns the underlying property:
- One, it allows the property under which the lien has been placed to be lifted. This, in turn allows the property to be sold, refinanced, or transferred. This would not occur with a lien;
- The second is that it allows the lienor (that is, the person or entity who placed the lien), to not have to forego their claim. In fact, by issuance of a surety bond, if their monetary claim prevails in court, payment is guaranteed.
Connecticut laws pertaining to mechanic liens are found under a 50 paged pamphlet regarding mechanic’s liens; and for information regarding the surety bond requirement, Section 6 is particularly relevant.
Obtaining a Connecticut Release of Lien Bond
It is likely that if you require a mechanic’s lien bond, you have a matter which will soon be present in court for litigation.
It is essential that our agency have a copy of the Court Order stating the amount of the surety bond required. Additional information including the parcel number, and formal location of the property will also be required. This can be obtained from your County Registrar’s office.
According to Connecticut law, the amount of the Connecticut release of lien surety bond will be the lien amount, PLUS court costs and interest (Chapter 847 of Connecticut Statutes, Section 49-37) . Therefore, the surety bond amount required is not the amount of lien as a standalone.
To obtain a surety bond lien, then, you will complete a standard surety bond application (which we’ll provide you), along with providing us with the court order and other information needed as requested.
As the process of approval for your lien surety bond occurs, expect to have plenty of back and forth communication between our agency and you. This is normal; however, your availability and timely responses are crucial, and make the difference between obtaining the required surety bond quickly or not.
Transfer of Funds
Once the application and other documents are approved by our underwriter, a Connecticut transfer of lien surety bond is secured by FULL CASH COLLATERAL, ONLY, for the total lien amount, including court costs and fees as determined by the court. The first year premium will also be included in the wire.
Real property or personal property are not accepted at all. It is strictly cash only.
Funds are also transferred by wire, only. We will not accept a cashier’s check. The wire is not sent to our agency; rather, the wire is sent to the surety. Wiring instructions are included with your application. You will only send the wire when we have given you the green light to do so.
We will also provide you with a receipt of collateral.
Surety Bond Premium And Renewals
In addition to the wire amount for full collateral is the amount of the premium which you will include in the wire.
You will want to take note of two important things:
- One, the premium amount for the Connecticut mechanic’s lien bond is 1% of the amount of the lien required, OR, $500, whichever amount is GREATER;
- the second matter to note is that the premium is not a onetime fee. The premium renews annually on the anniversary of the bond’s issuance, for as long as your case is being adjudicated.
Conclusion of Your Mechanic’s Lien Case
At the conclusion of your case, we’ll need a court order, again, which outlines the disposition of your case (i.e. the results), and how funds are to be disbursed. Disbursement of funds –whether as a return to you as purchaser of the bond or the lienholder typically takes a few weeks.
AmeriPro Surety Bonds provides release of lien surety bonds in Connecticut and anywhere else in the U.S. where the court has mandated a surety bond guarantee.
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