Bonding off a lien in Florida means transferring a recorded construction lien from your real estate onto a surety bond or cash deposit held by the clerk of court, which clears the title immediately while the lienor’s claim continues against the substitute security. The governing statute is Section 713.24 of the Florida Statutes, and the mechanics are straightforward if you get the bond amount and the filing right.1Florida Senate. Florida Statutes 713.24 – Transfer of Liens to Security
Who Can File the Transfer
Section 713.24 is not limited to the property owner. The statute lets “any person having an interest in the real property upon which the lien is imposed or the contract under which the lien is claimed” file the transfer.1Florida Senate. Florida Statutes 713.24 – Transfer of Liens to Security That covers owners, general contractors, developers, and lenders. A common scenario: a general contractor bonds off a subcontractor’s lien so an owner’s closing can go through on schedule.
How Much the Bond or Deposit Must Be
The amount is not just the lien plus a flat markup. It has three parts, and shortcuts like “lien amount plus 25%” are wrong.
- The full dollar amount demanded in the recorded claim of lien.
- Three years of interest on that amount at Florida’s legal rate. The rate is set quarterly by the Chief Financial Officer under Section 55.03 and sits at roughly 8.25% to 8.44% per year in 2026.2MyFloridaCFO. Judgment Interest Rates
- An attorney-fee cushion of $5,000 or 25% of the lien amount, whichever is greater, to cover fees and costs if the lienor sues.1Florida Senate. Florida Statutes 713.24 – Transfer of Liens to Security
On a $100,000 lien at an 8.25% legal rate, that works out to $100,000 plus about $24,750 in interest, plus $25,000 for the attorney-fee cushion, for a total around $149,750. On smaller liens the $5,000 floor controls: a $10,000 lien triggers the full $5,000 cushion rather than $2,500. Miscalculating any of these pieces invites a challenge to the bond’s sufficiency later, so run the math carefully.
How to File It
The transfer takes place at the clerk of court’s office in the county where the property is located. You have two options: deposit cash with the clerk, or file a surety bond issued by an insurer licensed in Florida.3The Florida House of Representatives. 2024 Statutes Chapter 0713 Either must satisfy the three-part formula, and either must be conditioned to pay any judgment entered to satisfy the lien.
Once you make the deposit or file the bond, the clerk prepares and records a certificate of transfer. The certificate includes a copy of the deposit receipt or bond and goes into the public records, showing that the lien has been moved off the real property.1Florida Senate. Florida Statutes 713.24 – Transfer of Liens to Security The property is released from the lien at that moment, and the lienor’s claim attaches to the security instead.
Notification to the lienor is the clerk’s job, not yours. The clerk mails a copy of the certificate and the bond or deposit documentation to the lienor by registered or certified mail, using the address listed on the recorded claim of lien.1Florida Senate. Florida Statutes 713.24 – Transfer of Liens to Security
Cash Deposit or Surety Bond?
This is mostly a cash-flow decision. A cash deposit ties up the full calculated amount with the clerk for the length of the dispute, which can be years. For a six-figure lien, that is a lot of capital sitting idle.
A surety bond lets you keep the money working. You pay a premium to a surety company, typically 1% to 2% of the bond amount depending on your credit, and the surety guarantees the lienor’s claim up to the bond limit. On the $149,750 example above, that premium runs roughly $1,500 to $3,000. It is non-refundable regardless of how the lien dispute ends.
The tradeoff with a bond is underwriting. The surety reviews your financial statements and credit, and sometimes requires collateral, especially on larger liens or weaker credit profiles. If your finances are strained, the surety may decline or price the premium higher. A cash deposit avoids the underwriting entirely but demands the liquidity upfront. For most owners and contractors with reasonable credit, the bond is the practical choice.
What Happens to the Lienor’s Claim
Transferring the lien does not kill it. The lienor can still sue, but now against the bond or deposit instead of your property. Several deadlines then shape how long that threat stays open.
The One-Year Default
Under Section 713.22, a construction lien must be enforced by suit filed within one year of the date it was recorded. Miss the window and the lien is discharged automatically.4Florida Senate. Florida Statutes 713.22 – Duration of Lien The same one-year period applies to claims against security substituted under Section 713.24.
Shortening It to 60 Days
An owner or the owner’s attorney can accelerate things by recording a notice of contest of lien with the clerk. Once the clerk serves that notice on the lienor by mail (service is complete upon mailing), the lienor has 60 days to file suit, or the lien is extinguished.4Florida Senate. Florida Statutes 713.22 – Duration of Lien It is the most direct way to force a lienor to put up or walk away rather than waiting out the full year.
Show Cause
Section 713.21 offers another route. Any interested party can file a complaint in circuit court demanding the lienor show cause within 20 days why the lien should not be enforced or canceled. If the lienor does not respond or commence an action by the return date, the court orders the lien canceled.5Florida Senate. Florida Statutes Chapter 713 Courts read the 20-day window strictly.
Adjusting or Challenging the Bond Later
After the transfer, disputes can shift to the security itself. Section 713.24 lets any party with an interest in the bond or the property file a complaint or motion in circuit court to require additional security, reduce the amount, change or substitute sureties, order payment or discharge, or address any other matter affecting the bond.1Florida Senate. Florida Statutes 713.24 – Transfer of Liens to Security The motion can be filed at any time, and more than once.
A lienor might challenge sufficiency if the lien amount was understated in the calculation or if the surety’s financial standing has slipped. An owner might ask for a reduction if the claim was partially satisfied or the original lien amount was inflated. Errors in the three-year interest math or in applying the $5,000 minimum are the kind of thing that invites one of these motions.
Bonding Off Does Not Mean Conceding
Moving the lien to a bond does not admit the lien is valid. It simply gets the encumbrance off the title so you can sell, refinance, or close while the fight continues on the security. Florida’s lien statute has strict procedural requirements, and lienors who miss any of them can lose on the paperwork even when the underlying debt is real. One example: the lien must be recorded within 90 days after the lienor’s final furnishing of labor, services, or materials, and a day late is fatal.6Florida Senate. Florida Statutes 713.08 – Claim of Lien
Why Owners Bond Off at All
Title companies flag construction liens as defects. Buyers back out, lenders refuse to close, and the property sits. Filing the bond or deposit clears the title the moment the clerk records the certificate of transfer, regardless of how long the dispute itself takes to resolve. For an owner facing a closing or a refinance on a deadline, that immediacy is usually worth the premium or the tied-up cash.