What is a Property Bond?
The average person has heard of property bonds yet is unsure as to what they are really all about. Bail bonds are usually paid in cash following an arrest. However, in some situations, property is used for bail instead of cash. As an example, you might not have enough cash to meet the bail requirement yet you might have property that is of significant value that can be used in place of cash. Let’s take a look at the basics of property bonds to help arrestees determine if their use is prudent following an arrest.
Property Bond Basics
The use of a property bond for bail purposes means it is guaranteed by the suspect’s pledge of equity in real property within the state where he or she is currently positioned. However, the property will not qualify as a bond unless it is a minimum of 1.5 times the amount of bail. As an example, an individual’s personal home, an individual’s business or other commercial building, or even a vacation home can be used as a property bond. The property bond provides the court with assurance that the arrested individual will appear in court at the scheduled date and time for justice to be served.
The court will obtain a lien against the property used for the property bond. This lien is set at the bail amount. If the arrestee does not show up to court and a property bond is used, his or her rights to the property used as bond are forfeited to the court. The property might also be subjected to foreclosure action. Once the foreclosure occurs, the court will collect the amount of bail owed. However, if the foreclosure sale does not result in a dollar amount that meets the cost of bail secured by the property, the accused will be on the hook to make up the difference.
Additional Information Pertaining to Property Bonds
There is a chance the property bond will be denied as a result of market conditions. As an example, if the property one desires to use for bond is in an area that has a low market value or an area where there is minimal demand, the court might deny its use as a property bond as it would prove challenging to sell the property in the event that the arrestee does not return to court on the designated day and time. The property’s value has to be verified, either through a court-appointed appraiser’s assessment or by way of paperwork that states the property’s value. Examples of such paperwork include the deed to the property, the title history, tax document declarations, mortgage or conveyance certificates and a list of existing lien holders. The specific rules pertaining to your jurisdiction provide additional detail about the nuances of property bonds. Furthermore, it must be noted some jurisdictions do not accept property bonds for release from jail.
In most instances, if the property’s equity is a minimum of 1.5 to 2 times that of the amount of bail, it will be accepted as property bond. The equity can be in one’s own home, a home used for leisure or a building used for business purposes. Our bail bond agent is here to assist you with your property bond. We will help you navigate the process, complete the paperwork and regain your freedom.
Releasing the Lien on the Property
Regardless of what occurs at the court hearing, the lien on the property will be released as long as the suspect shows up to court. The lien on the property is released by the court after the case closes. This means it is imperative that those who use a property bond to get out of jail show up for their court hearing on time no matter what.
Just Bail Bonds is on Your Side
If you are accused of a crime, do not suffer in silence in a jail cell. Reach out to Just Bail Bonds at (817) 303-3400 (Tarrant County) or (214) 495-1363 (Dallas County) for assistance from our bail bond specialist. Instead of asking friends or family for help during this embarrassing event, contact our team for prompt and professional assistance that helps you regain your freedom and return your life to normal.