If a vendor files a lien, can we bond of the claim after its filed?
1 reply
Aug 22, 2019
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