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When someone files a lien against you

IowaBonding Off Lien
Anonymous Contractor

I hired a contractor and I refuse to give final payment because of the shoddy work. They say they will put a lien against me. Can I put up a bond to cover the lien amount while we work this out in small claims court? Is this called Bonding Around a Lien?? Thanks!

1 reply

Levelset Admin at Levelset
| 335 reviews
Aug 30, 2019
Yes. This practice is referred to as bonding off the lien claim, or more specifically in Iowa discharging the mechanics lien through a bond. Bonding off a filed mechanics lien can be an easy, short-term solution to remove the cloud of lien on the property while the dispute is sorted out. This is expressly allowed by Iowa Code §572.15, stating that a mechanics lien may be discharged at any time by submitting a bond. One thing to keep in mind is that this comes at a steep cost. In order to bond off a lien claim in Iowa, the bond must be for twice the amount of the lien claim. Once a bond is secured, it must be approved and filed, similar to how mechanics liens are filed. Upon approval, the lien will be discharged, and the bond will act as a substitute for the property. For more information on bonding off mechanics liens, you should read our Primer on Bonding Off a Mechanics Lien.
NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such.
Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.See More...
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