Texas Mechanic's Lien Release Bond (Lien Discharge Bond ~ Texas)

Bond Penalty: Twice lien amount up to $40,000, 1.5 times the lien amount thereafter

A Texas mechanic's lien release bond is a statutory mechanism available to any person with interest in the real property or to effect delivery of lien free property to an owner. The Texas lien discharge bond rules are defined in the Texas Code (Sec. 53.171. Bond). Pursuant to law:

  1. If a lien, other than a lien granted by the owner in a written contract, is fixed or is attempted to be fixed by a recorded instrument under this chapter, any person may file a bond to indemnify against the lien.
  2. The bond shall be filed with the county clerk of the county in which the property subject to the lien is located.
  3. A mechanic's lien claim against an owner's property is discharged after:
    1. a bond that complies with Section 53.172 is filed;
    2. the notice of the bond is issued as provided by Section 53.173; and
    3. the bond and notice are recorded as provided by Section 53.174.

The Texas mechanic's lien release bond must include certain elements in order to be acceptable for filing. The surety bond must clearly identify the property subject to the lien, refer to the specific lien to be "bonded off", and must be issued in an amount determined by the Code's formula. If the lien amount is equal to or lesser than $40,000, the lien discharge bond must be equal to no less than twice the amount of the lien. If the lien is greater than $40,000 then the bond may be issued in an amount equal to one and one half of the lien. The surety bond must be issued by a surety company approved to transact surety business in the State of Texas and guarantee payment of those amounts to which the lienholder is entitled if he or she prevails in an action to collect on the lien.

Texas surety bond leader, SuretyOne.com is THE most underwriter of contractor's surety bond needs in the United States. Our experience in writing compliant bond forms, same day underwriting and bond delivery are unmatched. We underwrite mechanic's lien release bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. Contact us at (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat for assistance with your Texas mechanic's lien release bond or any other surety need.

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What We Need From You

Additional Attachments

  • Copy of lien.