Tuesday, August 20, 2019

How to Bond Off a Construction Lien in Michigan

The process for bonding off a construction lien in Michigan generally involves posting a surety bond for twice the lien amount with the county clerk where the property is located. Cash bonds are permitted, but not common. Once a bond is submitted, and no objections are received, the county clerk will issue a certificate vacating he lien which is then recorded with the register of deeds. The whole process takes about 4-5 weeks.
For lawyers, the process for bonding off a construction lien is governed by Section 116 of the Michigan Construction Lien Act (MCL 570.1116). A bond discharging a lien also acts to discharge any notice of lis pendens which may have been recorded.
For a detailed, step-by-step primer on bonding off a construction lien, we recently published a "How To" on our website: http://www.michiganconstructionlaw.com/blog/2019/8/14/how-to-bond-off-a-construction-lien-in-michigan

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