April 28, 2015

How does one discharge a mechanic’s lien? To answer that question, one must first understand what a mechanic’s lien is.  As the name implies, a mechanic’s lien is a secured interest on real property filed by a laborer who claims they were not paid what they were owed under a contract.

Pursuant to Section 19 of the New York State Lien Law, a mechanic’s lien may be discharged or released by filing a surety bond with the County Clerk. The procedure is relatively simple and an attorney can now electronically file the petition in Westchester County. The Petition must also be served on the lienor or laborer who filed the mechanic’s lien.

Construction agreements often require the general contractor to bond mechanic’s liens filed by subcontractors. Lease agreements often require tenants to bond mechanic’s liens filed by the tenant’s contractors.

The amount of the bond must be 110% of the alleged amount due on the Notice of Mechanic’s Lien. If the lienor does not object within 10 days, the bond effectively clears the title by substituting for the real property.

If you have any questions about mechanic’s liens, bonds or other construction or real estate related issues, please do not hesitate to contact an experienced attorney at (914) 338-8050. For more information about our firm please visit www.betenskylaw.com.