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Need to get a bond for a lien that was filed

Texas

I am a General Contractor (Fast Forward) who was hired by an apartment community (Silvermine Apartments) to do concrete work. We as the General Contractor (Fast Forward) hired a Subcontractor (Urban Demolition) who hired a Subcontractor (Mahan Construction) to do the work. The apartment community paid us the General Contractor (Fast Forward), we the General Contractor (Fast Forward) paid the Subcontractor we hired (Urban Demolition), but the Subcontractor (Urban Demolition) we hired did not pay the Subcontractor they hired (Mahan Construction). Now that Subcontractor (Mahan Construction) was not paid and cannot get anything from the Subcontractor (Urban Demolition) who hired them, they in turn filed a lien on the property (Silvermine Apartments). I was wanting to know who's name the bond should be purchased in as the apartment owners wish to purchase a bond because of the lien that was filed on the apartment community. I hope that clears things up.

1 reply

Jan 14, 2022

Ultimately, it shouldn't really matter who's name the bond is in. According to § 53-171(a) of the Texas Property Code, "any person may file a bond to indemnify against the lien.

While it doesn't seem to matter whose name the bond is purchased in, there may be some other nuances to bonding off a lien that aren't made obvious from Texas' lien laws. So, it may be wise to consult with a Texas construction lawyer during the process. That being said, the surety who sells the bond for bonding off the lien should be able to provide a great deal of assistance and clarity as well.

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