A Florida mechanic's lien release bond is a convenient mechanism available to contractors and property owners that would like to remove or "bond off" a lien. Pursuant to Florida Statute (F.S.) 713.24, a lien claimed under the code may be transferred by any person having an interest in a parcel of real property subject to the lien from said real property to a surety bond. The Florida mechanic' lien release bond bust be issued by a surety insurer licensed to do business in the State.
When determining the appropriate bond amount the statutory formula must be applied. The lien discharge bond must be in an amount equal to the claimed lien plus interest at the legal rate for three years, and an additional $1,000 OR twenty five percent (25%) of the amount demanded in the lien claim, whichever is greater. The additional surety bond penalty guarantees attorney's fees and court costs that may be assessed in any proceeding to enforce the lien. The bond must be conditioned on payment of any judgment which may be entered for the satisfaction of the lien. Upon filing the surety bond the clerk must issue a certificate showing the transfer of the lien from the real property to the bonding company. The clerk must then mail a copy if that certificate to the lienholder named in the claim of lien. Upon filing the real property is immediately released.
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