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Can we file a bond claim after a Mechanics lien was filed?

OklahomaBond Claims

Hello, If we filed a Mechanics Lien on a project, and now the GC for the project is advising us that the subcontractor has a payment and performance bond & is requesting us to file a bond claim, how does that affect the Mechanics Lien that was filed? Can we file a bond claim on top of the Mechanics Lien? We were not made aware of the subcontractor's bond until today. Thank you

4 replies

Apr 22, 2022

Under Oklahoma law, anybody can bond around a M&M lien. The bond extinguishes the lien by placing with or pledging to the Clerk of the Court, 125% of the lien amount. That's important to a developer or homeowner because the lien is a cloud on their title, so the bond frees up the title on their real property. Now, instead of foreclosing on the real property, you foreclose on the bond to get paid.

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Apr 22, 2022

Thank you. If the sub already had a bond on the job, but we were unaware of the bond until after the lien was filed, can we file against the bond now? I don't believe it was to bond around the lien, it just was never divulged in the beginning, and even after they had received the Preliminary Notice.

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Apr 23, 2022

OK, thank you for that clarification. Your lien is against the realty and impacts the owner of the realty. Assuming you did everything right in the process, the lien is valid as against the realty and stands by itself. The sub has a bond that you can go after, but their bond is not a bond that extinguishes the lien - it wasn't filed with the clerk of the court specifically because of your lien.

If the sub who hired you has a bond to guaranty payment in transactions like the one in which you have not been paid, then there's certainly nothing wrong with going after the bond. You can go after both as long as you don't really care who pays you. The GC presumably has a relationship with the property owner and is concerned foreclosing on your lien will interfere with that relationship. I would go after the sub's bond but if you aren't paid fairly promptly, you'll have to file to foreclose before your lien expires.

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Apr 23, 2022

Thank you very much! I truly appreciate your info on this. Have a wonderful rest of your weekend.  

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