Executing a surety bond is a great method to avoid ever having a lien placed on a property. A surety bond is a written promise to pay by the surety who guarantees any potential lien claimant or other party that he or she will make the necessary payments in connection with the written contract.

Any person, including the owner, with an interest in connection with a written contract may record, in the registry of deeds in the county or district where the land lies, a bond of a Massachusetts-authorized surety company in a penal sum equal to the contract sum or, if the contract does not contain a contract sum, in a penal sum equal to that person's fair estimate of the contract sum, all as set forth in the certificate on the bond. M.G.L. Ch. 254, 12.

Recording any such bond prevents any eligible claimant from attaching a lien for labor and/or materials performed under the contract in respect to which such bond is given. Id.

A valid bond for written contract identifies the parties, the location of the project, the amount of the bond, and relevant dates. Submit the completed and notarized bond document to the local recording office. Note that the register of deeds may refuse to record the bond if it fails to meet standards of form or substance, but no party to any such bond shall be discharged by any defect therein as against any party who has in good faith allowed his lien to be dissolved by lapse of time in reliance on the bond. Id.

The bond may be enforced by a civil action in the superior court or district court brought by any party in interest. Id. An attested copy of the complaint shall be filed and recorded in the registry of deeds. Id. No suit or action on the bond shall be commenced after the expiration of ninety (90) days after the claimant filed the statement. Id.

Such bond shall not create any rights which the claimant would not have had, or impair any defense which the obligors would have had, in an action to enforce a lien. Id.

This article is provided for informational purposes only and is not legal advice nor should it be used or relied upon as a substitute for the services of an attorney. Please consult with an attorney regarding any questions about filing a Bond for Written Contract or for any other issues regarding Mechanic's Liens in Massachusetts.

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