Alabama Mechanic's Lien Release Bond

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Bond Penalty: Lien amount + three years interest + $100

An Alabama mechanic's lien release bond when properly manuscripted and filed serves as a definitive release of a mechanic's lien filed on a parcel of real property. Given the frequent disputes that arise between contractors and their clients, liens are common. A property owner may avail himself or herself of the lien bond mechanism as a convenient, quick method to "bond off a lien."

The Alabama mechanic's lien discharge bond is addressed in the Alabama Code (Ala. Code 35-11-233). Pursuant to section (b), "A lien claimed on real property transferred (to a surety) by any person having an interest in the real property upon which the lien is imposed or the contract under which the lien is claimed, by filing with the court in which the action is brought a copy of the lien and a lien release surety bond executed by a surety insurer licensed to do business in Alabama. The surety bond must be in an amount equal to the lien plus interest at eight percent (8%) per year for three years, plus $100.00 to apply on any court costs which may be taxed in the proceedings."

Upon filing the Alabaman mechanic's lien release bond the court makes a record by certificate showing the transfer of the lien from the real property to the bond. The clerk must mail a copy by registered or certified mail to the lienor. The statute affords the lien claimant ten (10) days from the date of the receipt of the copy to move or petition the court for a hearing on the sufficiency of the bond penalty or on the sufficiency of surety. The court's decision on such motion is a final, formal determination. Upon the expiration of the ten (10) days, if a lienor motion has not been filed or the court has denied the motion, then the real property is released from the lien which is transferred to the surety bond.

Alabama surety bond leader, Surety One, Inc. is THE most responsive underwriter of mechanic's lien discharge bonds in the U.S. Our expertise in manuscripting surety bond forms acceptable to the Alabama general courts of justice, same day quoting, immediate bond execution and delivery are unparalleled. We underwrite lien bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. Call (800) 373-2804, email or click here for a live chat for application materials and assistance with your Alabama mechanic's lien release bond or any other surety need.

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Additional Attachments

  • Copy of lien