Release of Lien / Mechanic's Lien Bond

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.

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.

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.