Lien Transfer Bonds in Florida: Clearing Your Title Without Ending the Dispute
A recorded lien can stall a sale, a refinance, or a construction loan draw, even when the property owner is convinced the claim is wrong. Waiting for a court to sort it out can take a long time. Florida law offers another path: transferring the lien off the property and onto security.
How a Lien Transfer Works
Section 713.24(1), Florida Statutes, allows anyone with an interest in the real property, or in the contract under which the lien is claimed, to transfer the lien. There are two ways to do it:
- Deposit cash with the clerk of court
- File a bond issued by a surety insurer licensed to do business in Florida
Once the clerk records a certificate of transfer, the property is released from the lien and the lien attaches to the cash or bond instead. The clerk mails a copy of the certificate and the deposit or bond to the lienor by registered or certified mail.
How Much Security Is Required?
The amount is set by statute. It equals the amount demanded in the claim of lien, plus three years of interest at the legal rate, plus either $5,000 or 25 percent of the claim, whichever is greater. That extra cushion is meant to cover attorney’s fees and court costs in any action to enforce the lien.
For example, on a $40,000 claim, 25 percent is $10,000, which is more than $5,000. The security would need to be at least $50,000, plus the three years of interest. The clerk also charges service fees for the certificate and recording.
Why Owners Use Transfer Bonds
- The property can be sold or refinanced without a lien clouding the title.
- The underlying dispute can continue without holding the property hostage.
- Absent allegations of privity between the lienor and the owner, the court generally cannot enter any other money judgment against the owner, subject to any order increasing the security.
Points to Keep in Mind
A transfer does not decide whether the lien is valid. The lienor can still sue to enforce it, and the owner can still contest it. If the claim was willfully inflated, the owner may be able to recover the bond premium or interest on a cash deposit under section 713.31(2)(c).
The court can also order more security. Under section 713.24(3), if the amount above the claim is not enough to cover the lienor’s fees and costs, the court must increase the deposit or bond. On the other side, if the lienor does not file an action within the time allowed by section 713.22, the clerk returns the security on request.
Talk to a Lawyer Before You Post Security
Have a lien on your property and a closing on the calendar? Do not let it sit. Our team at Linkhorst Law Firm works with owners, contractors, and subcontractors across South Florida, and we can walk you through your options. Reach out to our Florida construction lien lawyers through our online form, and we will help you decide whether a transfer bond makes sense.
Source:
flsenate.gov/Laws/Statutes/2025/713.24
