Iowa Mechanic's Lien Release Bond

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Bond Penalty: Twice the lien amount

An Iowa mechanic's lien release bond when correctly written, filed and notice is given to the state registry serves as a definitive release of a mechanic's lien filed on a parcel of real property. Disputes frequently arise between contractors and their clients, so likewise liens are common. A property owner or contractor may avail himself or herself of the lien bond mechanism as a convenient, quick method to "bond off a lien."

The Iowa mechanic's lien discharge bond is addressed in the Iowa Code (Title XIV, Chapter 572, Section 572.15). Pursuant to the section (b), "A mechanic’s lien may be discharged at any time by submitting a bond to the administrator in twice the amount of the sum for which the claim for the lien is posted, with surety or sureties, to be approved by the administrator, conditioned for the payment of any sum for which the claimant may obtain judgment upon the claim."

Upon filing the Iowa mechanic's lien release bond the bond principal is responsible for making formal notification to the Secretary of State. Per the Secretary, "In order to have a valid mechanic's lien for residential construction projects, notice must be posted to the Mechanic's Notice and Lien Registry (MNLR) before the balance due is paid to the general contractor or owner-builder." Likewise, a party that post a lien release bond must notify the state by posting a specific document to the registry.

Iowa surety bond leader, Surety One, Inc.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 State of Iowa, preparation of the lien registry notice, 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 Iowa mechanic's lien release bond or any other surety need.

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What We Need From You

Additional Attachments

  • Copy of lien