I filed a lien against a General Contractor. The GC just provided me with a bond transfer lien. What does this mean and what is my next step?
1 reply
Mar 30, 2021
A transfer bond is a statutory mechanism to remove the construction lien from the property. Not to worry, they will have already posted a cash bond or a surety bond to cover the amount of the lien, 2 years of interest and a formula for attorney's fees. I actually think from a lienor's perspective that a transfer bond is better. You don't have to worry about whether the property has equity and you will be able to file motions to increase the bond to cover your attorneys fees in any law suit. Assuming that you did your Notice to Owner timely, provided a copy of your lien to the owner and contractor, and the work has been accepted and incorporated into the property, the next step would be a civil action on the transfer bond.