An Arizona lien-discharge bond can release property from a perfected construction lien when the statutory bond is recorded; it does not decide that the claim is invalid or erase the payment dispute. The statute specifies the surety, bond amount, property identification and service obligations. Coordinate with qualified legal, title and surety professionals before relying on the procedure for a sale.
What does recording the bond change?
Arizona Revised Statutes 33-1004 allows the listed interested parties to record the specified surety bond in the county where the property is located. On recording, the property is discharged from that lien under the statute. The bond becomes security for the claim; recording it does not establish that the contractor was wrong or that nothing is owed.
Identify the actual perfected lien and property before arranging the bond. The underlying entitlement and perfection questions are governed by the lien laws and facts, not by the plumbing invoice's title. Our waiver comparison covers the separate release documents associated with payment.
What must the bond contain?
Section 33-1004 requires a qualifying surety company authorized to transact surety business in Arizona. The bond amount is 150 percent of the demand stated in and secured by the notice and claim of lien. That is the statutory bond amount, not a quoted premium or a promise that the bond will be available for a particular applicant.
The bond identifies the property's legal description and the recorded lien's docket and page, and is recorded with the specified power of attorney. The statute does not allow an individual surety to replace the required company. Let the surety and legal professionals prepare and verify those particulars.
What remains after recording?
The principal must arrange service of a copy on the claimant within a reasonable time. Section 33-1004 contains action, joinder and service-dependent deadlines, including provisions for an existing foreclosure suit. Keep recording and service evidence; do not assume recording alone settles every litigation deadline.
Coordinate the recording with the title or escrow professional handling the transaction, and confirm how the current title requirements will be met. Preserve the claim, bond, payment record and notices for the dispute that remains. If nonpayment is the underlying problem, the prompt-payment records can help organize the facts, but this page does not determine a particular lien's validity or replace the professionals administering the bond.