DISCHARGE OF MECHANIC'S LIEN SURETY BOND
What is a Discharge of Mechanic’s Lien (DML) Surety Bond?
A DML Surety Bond is a surety bond required of owners if their real estate property has had a lien filed against it. It is basically a security interest that’s generally filed on the owner’s property by a supplier, contractor, or subcontractor.
This lien can be used to legally take the owner’s property and seek foreclosure in order to secure the payment of a debt or performance of some other obligation that was undertaken on the property in question. This surety bond ensures that any payment that’s due will be paid to the contractor that filed the lien if they win the case.
A DML Surety Bond allows the owner to discharge the lien in order to obtain the legal right to sell the property.
Despite the lien filed against the property, the owner can still choose to put it up for sale, get it renovated, or finish additional work. In this situation, the lien is moved from the property and assigned to the bond.

Michael F. Metayer, President & CEO

One Wall Street Building Conversion: Project Bond Amount $940MM
How is the bond amount determined?
The bond amount is determined by the court. This ensures the payment owed to the claimant of the lien is completely taken care of and the issue is resolved. It’s also important to note that the DML Surety Bond may sometimes require collateral to secure the obligation. It can be in the form of cash or an Irrevocable Letter of Credit issued by a financial organization that’s approved by the surety company.
In some instances, although rarely, for bonds exceeding $250,000, real estate can also be used as collateral.
A surety may waive the requirement of collateral in case of full financial disclosures.
Bond Rates
Rates vary between 1%-3% depending upon financial qualification. Rates are annually renewable until bonds are released.
It’s advisable to get in touch with a qualified surety bond agent and attorney when dealing with a discharge of mechanic’s lien and the subsequent surety bond to be posted.
Our Bond Companies
Listed below are examples of the bond companies we work with.









TYPES OF CONSTRUCTION AND COMMERCIAL SURETY BONDS
- Bid Bonds
- Performance and Payment Bonds
- Contractor Surety Bonds
- License and Permit Bonds
- Release of Mechanic’s Lien Surety Bond
- Subdivision and Site Improvement Bonds
- Connecticut Performance and Payment Surety Bonds
- New York City Performance and Payment Surety Bonds
- Understanding New York City Bid Bonds
- Understanding New York City Contractor Surety Bonds

TYPES OF CONSTRUCTION AND COMMERCIAL SURETY BONDS
- Bid Bonds
- Performance and Payment Bonds
- Contractor Surety Bonds
- License and Permit Bonds
- Release of Mechanic’s Lien Surety Bond
- Subdivision and Site Improvement Bonds
- Connecticut Performance and Payment Surety Bonds
- New York City Performance and Payment Surety Bonds
- Understanding New York City Bid Bonds
- Understanding New York City Contractor Surety Bonds
- Court Bonds
- Financial Guarantee Bonds
- Massachusetts Paid Family Medical Leave Bonds
- Connecticut Paid Family Medical Leave Bonds
- Crumbling Foundations
- Marijuana Bonds