Frequently Encountered Issues in Bond Filing and How to Avoid Them
Filing a bond to discharge a mechanic’s lien can be a straightforward process, but there are common issues that can arise, potentially complicating the process. Here are some of the most frequently encountered issues and tips on how to avoid them:
- Incomplete Documentation: One of the most common pitfalls is failing to provide all necessary documentation when applying for a bond. Ensure you have all lien-related documents, financial statements, and property details ready before starting the process.
- Incorrect Bond Amount: The bond amount must typically be 110% or more of the lien amount. Miscalculating this can lead to delays or the bond being rejected. Double-check the lien amount and ensure the bond covers any additional fees or interest.
- Delayed Filing: Timing is crucial in bond filing. Delays can result in the lien remaining on the property longer than necessary, affecting transactions or construction. Work with a bond filing service to ensure timely filing and processing.
- Miscommunication with the Lienholder: Failing to properly notify the lienholder after filing the bond can cause complications. Make sure to follow up and confirm that the lienholder has received the notification.
- Choosing the Wrong Surety Company: Not all surety companies are equal. Working with a reputable surety that specializes in construction bonds ensures a smoother process and better support.
By being aware of these common issues and taking steps to avoid them, you can ensure a smoother, more efficient bond filing process, successfully discharging the lien and protecting your property.
Jennifer Spinning, Principal
New York Bond Filing Agent
212-500-1229 / Info@NewYorkBondFiling.com
www.NewYorkBondFiling.com
50 East 42nd Street – 26th FL
New York, NY 10017
https://www.linkedin.com/company/new-york-bond-filing-agent
