Home>Levelset Community>Legal Help>We put a lien on a building and today when speaking to the General Contractor they said they have a bond around the lien. What does this mean and do we still have leverage to be paid what we're owed?
We put a lien on a building and today when speaking to the General Contractor they said they have a bond around the lien. What does this mean and do we still have leverage to be paid what we're owed?
Just looking for clarification on the question above.
1 reply
Feb 19, 2019
Most people get nervous when they hear their lien has been bonded off. However, when a lien is bonded off, that doesn't mean the claim for payment disappears- it just changes things a bit. (Don't Be Afraid of Threats to Bond Off Your Mechanics Lien) Mechanics liens attach to the property itself. However, once the court has accepted a petition to bond off a mechanics lien, it will substitute the surety bond for the property securing the lien claim. Meaning, that rather than foreclosing on the owner's property, the claimant will file an action to enforce the claim against the surety bond. In Illinois, lien claimants don't need to go through any additional steps to retain their rights. The deadline to enforce a bonded off lien claim is the same for enforcing the lien claim itself. (2 years after completion of lienable work) Furthermore, the IL statute requires that the bond be equal to 175% of the lien claim, and allows the "prevailing party" to collect attorney's fees as well. For more information on this topic visit zlien'sPrimer on Mechanics Lien Bonds and Bonding Off a Mechanics Lien.