This bond allows property owners or contractors to substitute a surety bond for a mechanic's lien filed against real property. The bond amount must be 175% of the lien claim amount and effectively removes the lien from the property title, shifting the claimant's recovery rights from the property to the surety bond. Th…
Overview
What it is.
This bond allows property owners or contractors to substitute a surety bond for a mechanic's lien filed against real property. The bond amount must be 175% of the lien claim amount and effectively removes the lien from the property title, shifting the claimant's recovery rights from the property to the surety bond. Th…
Who usually needs it
Property owners, contractors, subcontractors, or anyone liable for payment of a mechanic's lien who wants to remove the lien from real property title while preserving the claimant's right to recover against the bond instead of the property.
Pricing & timing
What to expect.
Generic pricing
Miscellaneous surety bonds cover a wide variety of obligations that don't fit neatly into other categories. Typical Pricing:. • Small bonds: May be available as flat-fee premiums starting around $100–$250. • Larger bonds: Commonly around 1–5% of the bond amount, though rates vary significantly by bond type. • Underwriting: Requirements vary — some bonds qualify for instant approval, others require full underwriting. Pricing varies significantly by the specific bond type, jurisdiction, and r…
Typical timeframe
Varies by bond type — contact for details
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amountVaries by license type or projectObligeeIllinois Circuit CourtsBond classMiscellaneous OtherCategoryConstructionBondRelease of Lien / Mechanic's Lien BondPlain descriptionThis bond allows property owners or contractors to substitute a surety bond for a mechanic's lien filed against real property. The bond amount must be 175% of the lien claim amount and effectively removes the lien from …Who needs this bondProperty owners, contractors, subcontractors, or anyone liable for payment of a mechanic's lien who wants to remove the lien from real property title while preserving the claimant's right to recover against the bond ins…
FAQ
Common questions.
How much does an Illinois Release of Lien / Mechanic's Lien Bond cost?
The bond amount must be 175% of the mechanic's lien claim amount. For example, if a $50,000 lien was filed, you would need an $87,500 bond. The actual premium (cost to purchase the bond) typically ranges from 1-5% of the bond amount depending on the applicant's credit, financial strength, and the underlying dispute. For a $87,500 bond, expect to pay approximately $875 to $4,375 annually. The surety must be A-rated with specific financial qualifications per A.M. Best Company standards.
Who can file for a mechanic's lien bond substitution in Illinois?
Under 770 ILCS 60/38.1, eligible parties include: property owners or former owners, contractors, subcontractors, anyone liable for payment of the lien, or associations representing owners (such as under the Common Interest Community Association Act). The petitioner must file a verified petition with the circuit court clerk in the county where the property is located and serve notice on the lien claimant and other interested parties.
Does bonding off a mechanic's lien eliminate the contractor's right to payment?
No. Posting a Release of Lien Bond removes the lien from the property title, but it does NOT eliminate the underlying claim. The lien claimant retains full rights to pursue their claim for payment—the claim simply shifts from the property to the surety bond. The principal (bond purchaser) and surety become substitute parties in any litigation. This allows property transactions to proceed while preserving the claimant's legal remedies against the bond instead of the real estate.
