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Can a lien filed in court be discharged by a lien removal bond?

GeorgiaBonding Off Lien

I filed a lien for non-payment against our contractor. His attorney ($25/hr) sent us a letter saying the lien was discharged by a lien removal bond. Is this possible and our rights removed?

2 replies

Jan 15, 2021

Yes, this practice is known as "bonding off" a lien claim. A mechanics lien attaches directly to the property being improved; essentially "clouding the title." One option for owners/GCs is to clear title is to file a lien discharge bond (either by depositing cash, or a surety bond) with the county clerk. This replaces the property with the bond, but by no means invalidates or removes your claim; and actually works to your advantage. Your claim is now secured by a figurative "pile of money" as opposed to being secured by the actual property which may have additional or competing interests/claims.

The general GA lien enforcement deadline still applies, 365 days from when the claim was filed. But the dynamics of the enforcement lawsuit, if necessary, can differ a bit as the action will be filed against the bond.

For more on this, see: Don't Be Afraid of Threats to Bond Off Your Mechanics Lien 

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Jan 19, 2021
I agree with Alex. If this is in fact the case, then this is good news because the lien bond provides a better source of recovery than the lien itself. Basically the lien bond would either be cash deposited in court or it would be a surety bond meaning that there is a deep pocket party that can pay your claim. If you need assistance in moving forward with your claim, please contact me. (404) 500-6302 or rstorrs@storrslaw.com
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