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When a lien is bonded off, a payment bond is available to pay off the lien. This provides a guarantee for payment to the construction firm and allows the property owner to be able to sell, finance or transfer the property without fear of a lien on the title.
In the state of California, various parties can file a mechanics lien if they are unpaid. According to California lien law, anyone who has provided materials or services during a construction project under a contract with the owner, contractor, or subcontractor, has the right to file a lien.
Nearly all states will require that a lien statement be filed within a certain number of days or months since labor or materials were last provided. In Kentucky, a lien statement must be filed within 6 months (note: not just 180 days) of the date on which the claimant ceases to labor or furnish materials. Although
Filing and Serving the Mechanics Lien According to California mechanics lien law, you have 90 days from the last day you performed work or provided goods on the project to file your mechanics lien.
Nearly all states will require that a lien statement be filed within a certain number of days or months since labor or materials were last provided. In Kentucky, a lien statement must be filed within 6 months (note: not just 180 days) of the date on which the claimant ceases to labor or furnish materials. Although
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The cost for these bonds is between 2-3% of the value of the lien inclusive of court costs. So if a mechanics lien is filed for $500,000. The court would add 25% for court costs bringing the total value to $625,000. The premium would then range between $12,500 and $18,750.
How to file a mechanics lien Complete a valid mechanics lien form. Each state has its own rules about the information and formatting required on the lien claim itself. Record the lien with the county. Serve notice to the property owner.
Information to include on a California Mechanics Lien Form The lien claim amount. Name of the property owner. Description of the work or materials you provided. Your hiring partys information. Property description. Identify yourself (name address) Include the warning statement. Sign verify your California lien claim.
To attach a lien, the creditor records the judgment with the county clerk for the Kentucky county where the debtor has property now or may have any property in the future.
Key Takeaways A property lien is a legal claim on assets that allows the holder to obtain access to the property if debts are not paid. Property liens can be granted for repossessing property such as a car, boat, or even a house if the owner has defaulted on mortgage payments.

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