Home>Levelset Community>Legal Help>I work in NYC. We had a sub of our GC file a lien on a property we contracted with the GC to perform work on. THe GC obtained a construction bond to bond over the lien. The owner of the property is asking if the bond was filed. Who and why does the bond need to be filed?

I work in NYC. We had a sub of our GC file a lien on a property we contracted with the GC to perform work on. THe GC obtained a construction bond to bond over the lien. The owner of the property is asking if the bond was filed. Who and why does the bond need to be filed?

New YorkBonding Off Lien

I work in NYC. We had a sub of our GC file a lien on a property we contracted with the GC to perform work on. The GC obtained a construction bond to bond over the lien. The owner of the property is asking if the bond was filed. Who and why does the bond need to be filed?

1 reply

Oct 17, 2018

That's a great question. New York is one of many states where a lien claim can be "bonded off". This is done by essentially substituting a surety bond in place of a filed mechanics lien. To substitute the bond in replacement of the filed mechanics lien, the bond must be filed with the county clerk of the county where the lien was filed (which should be the same county where the improvement is located). This requirement is created by § 19(4) of New York's mechanics lien statute. This makes sense - it creates formal requirements that way (1) the clerk can know the lien has been properly discharged, and (2) through this process, the lien claimant is notified that their lien is bonded off. As a general matter, the party who secures the bond is typically the one to file the bond with the county clerk. For more specifics on how exactly to file the bond with the county clerk, it could be helpful to reach out to the clerk or to reach out to the surety who provided the bond.

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