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The process of bonding off a mechanics lien starts after a claimant has filed a mechanics lien. After the claim is made, a general contractor or a property owner can contact a surety bond company to purchase a surety bond that replaces the value of the lien that was filed against the property.
Once you have paid off the balance of your debt, in full, you can file a Release of Lien form. This acts as evidence that the debt has been paid and will effectively remove the lien from your property.
New York Lien Law 20 provides that an owner may discharge a mechanics lien by the payment of money into court. Before a lien foreclosure action is commenced, the discharge is effectuated by depositing with the county clerk a payment equal to the amount claimed in the lien, with interest to the time of the deposit.
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.
At the expiration of the term of 10 years the lien of such judgment upon real estate shall be lost, unless within the term of 10 years such judgment is renewed and continued by agreement filed or by scire facias sued out in the manner provided in 4711 and 4712 of this title.
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But general contractors and property owners should be aware that bonding off a lien claim can be a difficult and expensive process. The owner or GC will need to pay up to 1.5 times the amount of the claim in order to get a lien release bond, and that money stays with the surety until the claim is settled.
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.
A judgment lien is usually created automatically on any of the debtors real estate that is located in the Delaware county where the superior court judgment is rendered; for other property, the creditor must file the judgment with the superior court in the Delaware county where the debtors property is located.
A judgment lien is usually created automatically on any of the debtors real estate that is located in the Delaware county where the superior court judgment is rendered; for other property, the creditor must file the judgment with the superior court in the Delaware county where the debtors property is located.
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.

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