Menu

Lien Bond

New YorkBonding Off Lien

If a mechanics lien was filed against a commercial tenant and property owner can the commercial tenant purchase a surety bond or is it the property owner’s responsibility. Also if the commercial tenant purchases a bond and loses the case on court is the tenant responsible for the entire amount in full.

1 reply

May 26, 2021

Yes, anyone in the chain (owner, lessee, or an upstream contractor) can obtain a lien discharge bond from a surety, and the lien will no longer be an encumbrance on the property. In fact, I would imagine that the lessee has a requirement in his or her lease to obtain such a bond (or otherwise have the lien discharged). 

Where there is a lien dischage bond and the case is resolved in the lienor's favor, the surety will pay the judgment. However, rather than simply pass along the "judgment bill" to the principal (here, the tenant) after the case is over, and as a part of obtaining the bond in the first place, the surety will require some sort of security which will make it whole in the event it has to pay the judgment. 

0 people found this helpful
Helpful