File a Construction Surety Bond

Discharge a Mechanic’s Lien

Do you have a Construction Mechanic’s Lien Filed Against Your Property or Project?

A mechanic’s lien can immediately impact your ability to finance, refinance, sell, or continue construction.

Filing a Bond to discharge the lien releases the lien off the title of the property. This clears title, protects the property from foreclosure, and allows projects, transactions, and financing to move forward while the dispute is addressed separately.

New York Bond Filing Agent (NYBFA) manages the lien discharge bond filing process accurately and efficiently—so you can move forward without unnecessary delay.

Construction company reviewing blueprints and frequently asked questions about filing a bond discharge

What is a Mechanic’s Lien Discharge Bond?

A Bond Discharge is a mechanism for removing a mechanic’s lien from the title of the property. What is a mechanic’s Lien? A mechanic’s lien is a legal claim filed against real property in New York by a contractor, subcontractor, supplier, or other construction professional who asserts that they have not been paid for labor, services, or materials provided to a project.

Once filed, the lien attaches to the property—not just the party who ordered the work—and becomes a public record that can affect title, financing, refinancing, leasing, construction progress and sale of the property – while the dispute remains unresolved.

Filing a mechanic’s lien discharge bond removes the lien from the property and transfers the claim to a surety bond instead. This allows the underlying dispute to be addressed separately, without restricting the use or transfer of the property.

New York Lien Law § 19(4) allows a lien to be discharged by filing a surety Bond.

Who Can File a Bond Discharge?

The Bond can be filed by any party who has a vested interest in the title of a property or an ongoing construction project. This means it can be a property owner, general contractor, sub-contractor, tenant or a lender can Bond off a mechanic’s lien.

A construction company worker on a job site in safety gear
A construction company worker on a job site in safety gear

How Filing a Bond Helps?

Property Owners:

  • Removes the lien from the property
  • Protects the ability to sell, refinance, or develop
  • Prevents your mortgage from being in default
  • Prevents and stops a mechanic’s lien foreclosure action
  • Avoids prolonged project delays and financial exposure

Tenants (Commercial Properties)

If you are a tenant and a lien has been filed due to tenant-contracted work:

  • Bonding the lien can prevent default under your lease
  • Protects the landlord’s property from encumbrance
  • Allows tenant improvements and operations to continue

Contractors & Developers:

  • Keeps construction schedules intact
  • Prevents financing interruptions
  • Allows disputes to be addressed without stalling the project

What are the Benefits of Bonding Off a Lien?

Filing a bond to discharge a mechanic’s lien offers several benefits:

  • Free Up Property: Removing the lien from the property can clear the title and facilitate the sale, refinancing, or continued use of the property. Speed matters in construction: lenders, closings, and schedules all depend on quick resolution.

  • Maintain Construction Funding: Allow construction financing to continue without disruption and ensure financing is not in default.

  • Transfer of Liability: Transfer the obligation from the property to the bond itself. The lienor’s remedy becomes a claim against the bond, not against the property.

  • Avoid Foreclosure: Prevent foreclosure proceedings and protect the property. The lienor cannot foreclose on the property because the lien no longer encumbers the real estate.

  • Cost-Effective Solution: Limits and caps financial exposure. When you post a bond to discharge the lien, the lien moves from the property to the bond, and New York law sets a maximum amount that can ever be collected. A bond caps the exposure at the lien amount, plus 25% (NY statutory requirement), plus interest, and puts a known limit on the claim.

Hire New York Bond Filing Agent to file a bond discharge for a quick, seamless process that clears your property title and keeps your construction project on track.

Call for a free consultation or fill out our form online today.

Why Choose New York Bond Filing Agent? ®

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File With Experienced Professionals Today

New York Bond Filing Agent – the premier agent for filing mechanic’s lien surety Bonds and Bond Discharges. Bond off a mechanic’s lien filed against you, your project, or your property.

Call for a free consultation or fill out our form online today.