lien bond definition
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What is a Lien Bond? A lien bond is a legal document that names a person's property as collateral against a loan. It is used to ensure that debts are paid. If the debt is not paid on time, the property may be seized as payment. Specific legal situations determine the type of lien bond that will be used. In the United States, the term lien bond has a broader definition than that used in other countries.
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Release of Lien Bond A Release of Lien Bond is required to discharge liens against property. A lien may be filed by a third party such as a supplier or subcontractor who is involved in a construction project. Thus, the bond may be required of the general contractor obligated to pay these parties. Ownership of real estate cannot be transferred unless the property is free of liens or a Release of Lien Bond has been filed. The bond protects the party who filed the lien against the property and guarantees payment will be made to this party. It is important to note that Release of Lien Bonds always require that collateral be posted in advance in the amount equal to 100% of the bond obligation. The collateral must be in the form of cash, or cash equivalent and is in addition to the premium charged for the bond.
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What is a 'Bid Bond' Bid Bond. What is a 'Bid Bond'. A bid bond is a debt secured by a bidder for a construction job or similar type of bid-based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected.
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What Is a Release of Lien? A lien gives the lien holder (the subcontractor) an assurance that they will get paid by giving them a claim against the real property. In other words, a lien uses the property as security. If the lien is recorded with the county, as it should be in order to make it official, it can cloud the title.
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Enforcement of Non-Mortgage Liens A lien is a creditor’s legal claim against property, such as a home, owned by a debtor. The home serves as security for a debt. There are two types of liens. The first are liens the homeowner agrees to, such as mortgages and home equity loans.
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- The surety bond is recorded along with the release document. The document must have: The name of the party asserting the lien. The name of the party the lien is against. The surety bond must be attached to the release. There must be a place on the document for the clerk's approval of the surety. The bond must be double the amount of the lien. Prior to judgment a bond to release a lien may be executed before the county clerk in the county in which the lien was filed. The bond must be double the amount of the lien claimed. The clerk shall approve the bond only if the bond is secured by:
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Know Surety Bonds.com A release of lien bond will therefore discharge the mechanic's lien and allow the owner of the property the legal right to sell or deal with the property as the discharge of mechanic's lien bond guarantee to the claimant of the lien any payment that is still due to them with interest and cost.
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Understanding Real Estate Liens A lien is a claim against property made by someone in order to secure payment of a debt. The lien essentially makes the property collateral against monies or services owed to the other person or entity. Collateral is an asset that has been pledged by the recipient of a loan as security on the value of the loan.
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Liens Department of Revenue. Liens. A lien is a legal claim to secure a debt and may encumber real or personal property. A state tax lien (also known as a state tax execution) is recorded with one or more Clerks of Superior Court to make it a matter of public record and to secure the debt.
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What is an auto lien? An auto lien is a document given legal authority by state and federal statute; it confirms a claim that the holder of the lien has upon a specifically identified vehicle. When you or I decide to purchase a car we usually have two ways to go. Either we have the cash to buy the vehicle, or we do not.
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What Does it Mean to Put a Lien on a House? Liens on property must be filed with the local clerk of court. A lien is a claim on a residential property for the homeowner's unpaid bills. When a lien is placed on a home's title, it means that the owner cannot legally sell, refinance or otherwise transfer a clear title of ownership to the home. Liens are a way to ensure that creditors receive payment, and only certain debts can result in real estate liens.
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- A lien is a legal claim on a property that allows the lienholder to take possession of the property if certain conditions aren't met—if the money for that property isn't paid, for instance.Houses and cars are types of property that often have liens placed against them.imilarly, lending companies file liens when someone finances a car purchase. The company actually owns the car until it's paid off, so they file a lien on it to ensure that the car owner pays off the balance. When the car is paid off, the lien is removed. Liens are also filed when someone can't—or doesn't—pay a debt.
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What is 'Lien Waiver' Lien Waiver. DEFINITION of 'Lien Waiver'. A document from a contractor, subcontractor, supplier or other party holding a mechanic's lien stating that they have been paid in full and waiving future lien rights to the disputed property. Generally, there are four types of lien waivers:
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Vendor's Lien Law and Legal Definition Vendor's Lien Law and Legal Definition. A vendor's lien is the right of a seller to repossess the property sold until the buyer makes all payments for the full purchase price. The property is the collateral given as security to the seller for the purchase price. It is sometimes used in connection with a purchase money mortgage on real estate.
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lien n. any official claim or charge against property or funds for payment of a debt or an amount owed for services rendered. A lien is usually a formal document signed by the party to whom money is owed, and sometimes by the debtor who agrees to the amount due.
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What is a 'Secured Bond' What is a 'Secured Bond' A secured bond is a type of bond that is secured by the issuer's pledge of a specific asset, which is a form of collateral on the loan. In the event of a default, the bond issuer passes title of the asset onto the bondholders.
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What is a Surety Bond? Surety bond definition: a legally binding contract that ensures obligations will be met between a principal (whoever needs the bond), an obligee (the one requiring the bond) and a surety (the insurance company guaranteeing the principal can fulfill the obligations).
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DEFINITION of 'Federal Tax Lien' Federal Tax Lien. DEFINITION of 'Federal Tax Lien'. A federally authorized lien against any and all assets of a taxpayer who has unpaid back taxes. The lien allows the Internal Revenue Service (IRS) to secure or otherwise requisition the taxpayer's property in order to secure payment.
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- Information Navigation. Bonds. A bond is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principle amount of the loan at maturity.
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What is a 'Secured Bond' A type of bond that is secured by the issuer's pledge of a specific asset, which is a form of collateral on the loan. In the event of a default, the bond issuer passes title of the asset or the money that has been set aside onto the bondholders.
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What Is a Property Lien? A lien is typically a public record. It is generally filed with a county records office (for real property) or with a state agency, such as the secretary of state (for cars, boats, office equipment, and the like). Liens on real estate are a common way for creditors to collect what they are owed.
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Bond of Indemnity Law and Legal Definition Generally Indemnity bonds refer to an obligation in writing where one party agrees to reimburse the other for loss or injury that the party may suffer because of the occurrence of a specified event, or that one party will protect the other from harm or loss.
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Lien In other common-law countries, the term lien refers to a very specific type of security interest, being a passive right to retain (but not sell) property until the debt or other obligation is discharged. maritime lien is a lien on a vessel, given to secure the claim of a creditor who provided maritime services to the vessel or who suffered an injury from the vessel's use.
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lien 1 : a charge or encumbrance upon property for the satisfaction of a debt or other duty that is created by agreement of the parties or especially by operation of law; specifically : a security interest created especially by a mortgage assessment lien : a lien that is on property benefiting from an improvement made by a municipality and that secures ...
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What Is a Property Lien? Share on Facebook. A lien is a notice attached to your property telling the world that a creditor claims you owe it some money. A lien is typically a public record. It is generally filed with a county records office (for real property) or with a state agency, such as the secretary of state (for cars, boats, office equipment, and the like). Liens on real estate are a common way for creditors to collect what they are owed.
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Waiver of Bond Law and Legal Definition Waiver of Bond Law and Legal Definition. A bond is an obligation, expressed in writing, to pay a fixed and liquidated sum on the happening or nonoccurence of a specified condition or event.