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 New Hampshire
In New Hampshire a mechanic's lien is secured by attaching the property in a court action (RSA 447:10). The owner can petition the court to release a real estate attachment, and the court may require a bond with sureties to pay any judgment the claimant wins (RSA 511:48).
- A private-project lien lasts 120 days after the work or materials are furnished unless secured by attachment (RSA 447:9, 447:10).
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.