Substituting a bond when a mechanics lien has been filed against property is allowed under CO Rev. Stat. §38-22-131. This can be an effective way to remove the cloud of lien from a property. Instead of having a claim against the property, the bond takes its place. However, the claim must still be dealt with at some point, usually by some form of legal action. The process to bond off a lien claim isn't overly complicated. The surety bond needs to be brought to the district court where the property is located. Once the bond is approved by the court, the bond will be filed by the clerk and the lien will be released. Keep in mind, that this is a costly option as the surety bond must equal one and a half times the amount of the filed lien claim. Good luck!
For further information: Primer on Mechanics Lien Bonds & Bonding Off Liens
NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such. Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.See More...See More...
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