Representative Jerry Torr has again offered a bill that seeks to streamline the discharge of a mechanic’s lien in place of a bond. Currently, to be bonded off, a general contractor or owner (or other party) must file an action in court to get the alternative security (i.e. the bond) approved in form and amount before the owner’s property is essentially released from the lien and that lien is then transferred to (and secured by) the bond. House Bill 1021 permits a person to discharge a mechanic’s lien by filing an indemnification, payment, or cash bond with the recorder’s office of the county in which the real property is located. The bond must be in an amount equal to at least 150% of the lien or $7,500, whichever is greater.
Read more about how this may affect you in 2020.