What a mechanic's lien discharge bond is
When a contractor, subcontractor or supplier records a mechanic's lien on a property, the owner or general contractor can post a bond to release the lien. The claim then moves from the property to the bond, so the property can be sold or refinanced while the dispute is settled.
In District of Columbia
In the District of Columbia, an owner can release a mechanic's lien by paying the claim into court or filing a court-approved undertaking with sureties, under D.C. Code § 40-303.16. An undertaking can also be offered before suit under § 40-303.17.
- The undertaking promises to pay any judgment, which may include interest and costs.
You need this bond if you're
- A property owner facing a mechanic's lien
- A general contractor whose subcontractor or supplier filed a lien
- A developer who needs clear title to sell or refinance
- A lender that requires the lien removed before funding
What the surety looks at
The lien, the dispute behind it and your finances. Because the bond can pay out if the claimant wins, sureties often look closely at the dispute.