My Mechanics Lien Was Bonded Off. Now What?

State-by-State Rules

Texas

Bond amount. Twice the lien if the liens covered total $40,000 or less; otherwise the greater of 1.5 times the liens or the lien amount plus $40,000. (Tex. Prop. Code § 53.172.)

Notice. The county clerk issues notice to the named obligees and mails the notice and a copy of the bond by certified mail to the address stated in each claimant's lien affidavit. Mailing is not required if the affidavit does not state the claimant's address. The clerk records the bond, notice and certificate of mailing. (Tex. Prop. Code §§ 53.173, 53.174.)

Deadline. Suit on the bond must be filed no later than one year after service of the notice, and not after the underlying lien would have become unenforceable under § 53.158. The earlier date controls. (Tex. Prop. Code § 53.175(a).) See our guide to filing a mechanics lien in Texas.

Florida

Security amount. A cash deposit or a bond by a qualified surety equal to the lien amount, plus three years of interest at the legal rate, plus the greater of $5,000 or 25 percent of the lien amount for attorney's fees and costs. (Fla. Stat. § 713.24(1).)

Effect and notice. The clerk records a certificate transferring the lien to the security and mails it, with a copy of the bond or deposit, to the lienor by registered or certified mail. (Fla. Stat. § 713.24(1).)

Deadline. The transferred lien generally remains subject to the one-year enforcement period measured from recording of the lien. (Fla. Stat. § 713.22(1).) A properly recorded and served notice of contest can shorten the enforcement period to 60 days after service, and that procedure expressly applies to claims against transfer security. (Fla. Stat. § 713.22(2).) Separately, any interested party may file a complaint under § 713.21(4). The clerk then issues a summons requiring the lienor, within 20 days after service, to commence an enforcement action or show sufficient cause why enforcement should not be commenced. Failure to comply permits cancellation by court order, and the procedure can apply to a lien transferred to a bond. (Fla. Stat. § 713.21(4).)

If the lien is transferred during a timely pending enforcement action, the claimant must commence a claim to recover against the security within one year after the transfer, unless that period is shortened by law. The existing foreclosure claim alone does not excuse timely assertion of the claim against the transfer security and its surety. (Fla. Stat. § 713.24(4); Hiller v. Phoenix Associates of South Florida, Inc., 189 So. 3d 272 (Fla. 2d DCA 2016).) See our Florida lien law guide.

California

Bond amount. 125 percent of the lien claim, or 125 percent of the amount allocated in the lien claim to the property being released. (Cal. Civ. Code § 8424(b).)

Effect and notice. Recording releases the property from the lien and from any action to enforce it. (Cal. Civ. Code § 8424(c).) The person who obtains and records the bond must give the claimant notice complying with the statutory notice requirements and including a copy of the bond. (Cal. Civ. Code § 8424(d).)

Deadline. An action on the release bond must be filed within six months after notice of the bond is given. If notice is not given, the period is tolled until it is. (Cal. Civ. Code § 8424(d).) That period is separate from the ordinary 90-day deadline to enforce a lien after recording. (Cal. Civ. Code § 8460.) A bond does not revive a lien that was already unenforceable. See our California enforcement deadlines.

Illinois

Bond amount. 175 percent of the lien claim, excluding interest and attorney's fees. (770 ILCS 60/38.1.)

Procedure and notice. The applicant must file a verified petition and serve the petition and statutory notice personally or by certified mail, return receipt requested, on the persons and attorneys specified in § 38.1(d). If a lien enforcement action is pending, the petition is subject to the five-month filing limit in § 38.1(c). After the court approves substitution, the petitioner must distribute the order as required by § 38.1(g) and record the order and the executed approved bond in each county where the property is located. In a pending lien action, the principal and surety become parties when the bond is approved. (770 ILCS 60/38.1.)

Deadline. Section 38.1 does not create a new limitations period. Under §§ 9 and 28, the period is generally two years after completion of the claimant's contract or the applicable extra or additional work or furnishing of materials, not two years after bond substitution or necessarily after completion of the entire project. (770 ILCS 60/9, 60/28.) A person authorized by § 34 may serve a written demand containing the required statutory warning; the claimant must then commence suit, or file the required answer in a pending suit, within 30 days after service, or the lien is forfeited. (770 ILCS 60/34.) Lien defenses survive the substitution. (770 ILCS 60/38.1.) See our Illinois enforcement deadlines.

Georgia

Security amount. Generally twice the lien amount. For a lien against the owner's domicile, meaning the owner's established, fixed, permanent or ordinary dwelling place, the bond amount equals the amount claimed. Cash bonds and other approved security, including qualifying real property bonds, are also permitted. (O.C.G.A. § 44-14-364(a).)

Notice. Within seven days after filing, the party filing the bond must send notice and a copy of the bond to the claimant by registered or certified mail or statutory overnight delivery. Failure to give notice does not invalidate the bond. (O.C.G.A. § 44-14-364(b).)

Deadline. The claimant must still commence the lien action within 365 days after filing the claim of lien. The trigger is the lien filing, not the bond. (O.C.G.A. §§ 44-14-361.1(a)(3), 44-14-364(a).) The Georgia Supreme Court has held that bonding does not create an independent cause of action or excuse the required timely action. Few v. Capitol Materials, Inc., 274 Ga. 784, 559 S.E.2d 429 (2002). Georgia courts have also recognized that some real property notice-of-action requirements do not carry into bond litigation. Washington International Insurance Co. v. Hughes Supply, Inc., 271 Ga. App. 50, 609 S.E.2d 99 (2004).

A properly recorded and delivered notice of contest can shorten the time to commence the required lien action to 60 days from receipt, as stated in the statutory notice. (O.C.G.A. § 44-14-368.) When the lien has already been discharged by bond, the claimant should separately determine which filing requirements apply to recovery against the bond and should not assume that substitution extends any action deadline. See our Georgia lien law guide.

Colorado

Bond amount. 1.5 times the lien, plus costs allowed to date, by a corporate surety bond or other undertaking approved by the court. (C.R.S. § 38-22-131.)

Effect. Court approval and recording of the release certificate discharge the lien and any related lis pendens. (C.R.S. § 38-22-132.)

Deadline. An action on the bond is subject to the same limitations period as a lien foreclosure: generally six months after the last work or materials or completion, not six months after the bond. (C.R.S. §§ 38-22-110, 38-22-133.) See our Colorado enforcement deadlines.

Arizona

Bond amount. 150 percent of the demand stated in and secured by the notice and claim of lien. (A.R.S. § 33-1004(B).)

Effect and notice. Recording discharges the property whether or not the claimant is served. After recording, the principal must cause a copy of the bond to be served on the claimant within a reasonable time. (A.R.S. § 33-1004(A), (C).)

Deadline. The claimant must still commence the enforcement action within six months after recording the lien. (A.R.S. § 33-998.) If an enforcement action is pending when the bond is served, the claimant must institute proceedings to add the principal and surety within 90 days after receipt. Section 33-1004(D)(2) also provides additional time for joinder when service occurs near the ordinary commencement deadline. That provision does not extend the six-month deadline for commencing the underlying action. Alliance TruTrus, LLC v. Carlson Real Estate Co., 229 Ariz. 84, 270 P.3d 911 (App. 2012). If the bond was not properly served, subsection F provides six months after discovery, subject to a two-year outside limit after the bond was recorded. (A.R.S. § 33-1004(C)-(F).)

New York

New York has two different procedures, and they should not be confused.

Discharge of a single lien under Lien Law § 19(4). The undertaking must equal 110 percent of the lien. A corporate surety undertaking becomes effective when it is filed with the county clerk and served on the lienor. The claimant generally must still enforce within one year after filing the lien, unless the lien is properly extended; bonding does not start a new year. (N.Y. Lien Law §§ 17, 19(4).) Under § 59, a properly served notice may require the lienor to commence an enforcement action within a specified period of at least 30 days after service, or show cause at the stated court appearance why the lien or discharge bond should not be cancelled. Cancellation requires a court order. (N.Y. Lien Law § 59.)

Bond discharging all liens under Lien Law § 37. The court sets the amount, which may not be less than the unpaid contract balance. To perfect a claim against a § 37 bond, the claimant must file a notice of claim within the statutory period for filing a notice of lien. The action on the bond must be commenced within one year after completion of the improvement or, if the work is abandoned, within two years after the claimant's last work or furnishing of materials. Before commencing the action, the claimant must also comply with § 37(7), including its filing and joinder requirements. (N.Y. Lien Law § 37(5), (7), (9).) See our New York lien law guide.

Virginia

Bond amount. The court must approve the surety and the bond penalty required by § 43-70, which calls for double the amount of the lien or liens and costs. Section 43-71 incorporates that requirement when the bond is furnished before suit. (Va. Code §§ 43-70, 43-71.)

Procedure. After five days' notice to the lienor, an interested party may ask the court for permission to post the bond before suit. The bond remains subject to adjudication of the lien's validity and amount, and the sureties must be made parties. (Va. Code § 43-71.)

Deadline. The claimant must still sue by the later of six months after recording the memorandum of lien or 60 days after completion of the improvement or other termination of the work. (Va. Code § 43-17.) The claimant must prove the lien elements against the bond. Kane, 243 Va. 503. See our Virginia lien law guide.

Washington

Bond amount. For liens of $10,000 or less, the greater of $5,000 or twice the lien; for larger liens, at least 1.5 times the lien. The surety must meet the statute's listing and underwriting-limit requirements. (RCW 60.04.161.)

Effect. Recording releases the property. The statute does not expressly require separate notice of the bond to the claimant, so check the county records regularly. A claimant may proceed against the surety without joining the bond purchaser as an indispensable party. Inland Empire Dry Wall Supply Co. v. Western Surety Co., 189 Wn.2d 840, 408 P.3d 691 (2018). Lien priority may still be litigated after a release bond is recorded. Olson Engineering, Inc. v. KeyBank National Ass'n, 171 Wn. App. 57, 286 P.3d 390 (2012).

Deadline. An enforcement action generally must be commenced within eight calendar months after recording the lien, not the bond. The period remains subject to statutory credit-extension and tolling rules. Failure to commence a timely action ordinarily discharges the surety. (RCW 60.04.141, 60.04.161.) See our Washington lien law guide.

Quick Reference: Bond Amount and Enforcement Deadlines

These are abbreviated summaries, not a standalone calendaring guide. Bonding does not necessarily start a new period. Consult the state discussion above for triggering events, shortened periods, joinder requirements and exceptions.

What to Do When Your Lien Is Bonded Off

1. Get the recorded bond and every notice or order. Identify the principal, the surety, the bond number and the recording date.
2. Calendar every potentially applicable date conservatively. Include the original lien enforcement deadline, any bond-specific deadline, and any shortened deadline from a notice of contest or demand. Then determine which deadline governs each required act, whether commencement, joinder, service or a response in a pending case. Do not assume that a new bond-related period extends an existing commencement deadline.
3. Check the bond and the surety. Confirm that the bond satisfies the statutory amount, terms, execution, approval and filing requirements, and that the surety meets all applicable licensing, financial-rating, listing, underwriting-limit and court-approval requirements. A deficient bond can be challenged.
4. Name the right parties. State law determines the required defendants and how they become parties. Some states require both the principal and the surety. Washington permits an action against the surety alone, while Illinois automatically makes the principal and surety parties when substitution is approved in a pending lien action.
5. Do not relax your proof. Gather the contract, notices, proof of service, invoices, delivery records and payment history exactly as you would for a lien foreclosure.
6. Evaluate fees before negotiating. A well-documented claim may support settlement discussions. Determine whether attorney's fees are recoverable, against whom, and whether the claimant also faces an adverse fee award. Illinois, for example, can expose an unsuccessful claimant to fees.

The Bottom Line

Bonding off ordinarily substitutes security for the real property. It does not establish that the claim is valid or timely preserved, and it may change the required parties and enforcement procedure. Obtain the bond and related papers, identify the governing deadlines, and timely complete each required filing, joinder, service or response. If your lien has been bonded off, contact us promptly so an attorney in our network can review the deadlines. The National Lien & Bond platform tracks lien and enforcement deadlines for every project; create an account to keep them in one place.

This article provides general information and is not legal advice. Bond requirements and deadlines depend on the state, the project, the dates of the lien and bond, and any notices served. Confirm the current statute before relying on any deadline.