Washington State Court of Appeals Misstates Basic Surety Law Involving Release of Lien Bond Claim

Washington’s Release of Lien Bond statute, RCW 60.04.161, allows a property owner or contractor to “release” real property from a construction lien, prior to the lien claim being resolved, by issuing a release of lien bond. Recording the bond does not destroy the lien entirely, but instead transfers the lien from the real property to the bond. DBM Consulting Eng’rs, Inc. v. U.S. Fid & Guar. Co., 142 Wn.App.35, 42 (2007) (emphasis added) (holding that the “lien bond releases the property from the lien, but the lien is then secured by the bond”).

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