Massachusetts Dissolution by Bond

Posting a Lien Bond in Massachusetts

Once a lien is placed on real estate, it can cause multiple issues for the owner. For example, since a lien is a type of encumbrance, it appears on the title and might make it difficult to sell or mortgage the property. Often, a lien claimant will agree to dissolve a lien in exchange for the responsible party posting a bond that guarantees performance.

Any person with an interest may dissolve a lien by recording or causing to be recorded in the county registry of deeds where the land lies, a surety bond by a company authorized to do business in Massachusetts, in a penal sum equal to the amount of the lien sought to be dissolved conditioned for the payment of any sum which the claimant may recover on his claim for labor or labor and materials. M.G.L. Ch. 254, 14.

Upon the recording of the bond, the lien shall be dissolved. Id. Notice of the recording shall be given to the claimant by serving on the claimant a copy of the notice of recording together with a copy of the bond by an officer qualified to serve civil process or by delivering same to the claimant. Id. The claimant may enforce the bond by a civil action commenced within ninety (90) days after the later of the filing of the statement of account or receipt of notice of recording of the bond, but 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. The dissolution is then conditioned on the actual receipt of the bond. See Id.

The dissolution by bond form contains the following information: 1) principal's name; 2) surety's name; 3) lien claimant's name and address; 4) the bond amount; and 5) the indexed book, page, and instrument number of the previously recorded Notice of Contract. Id.

This article is provided for informational purposes only and should not be relied upon as a substitute for professional legal advice. If you have questions about dissolving a lien by posting a penal bond, or any other issues related to lien laws in Massachusetts, please consult with an attorney.