Property Bond Basics
There are a few ways to satisfy a bail requirement ordered by the court, which can grant you temporary release from jail while awaiting trial. If allowed by the court, a Property Bond is one way to secure that requirement.
A Property Bond is a secured bond that posts the value of tangible property, such as a home or other real estate, to the court in exchange for temporary release. Or in other words, your home is held as collateral in an agreement to appear in court as ordered by a judge. Property bonds are obtained by the court and held by the county clerk until a verdict has been reached.
Where property bonds in Colorado are accepted, the unencumbered equity in a home must be at least equal to one and a half times the amount of the bond set by a judge. For example, if bail is set at $20,000, the unencumbered equity in the home must be $30,000.
A home with a mortgage may be used for a Property Bond, if it has the required amount of equity to satisfy the bond’s terms. Equity is value of the home, minus any encumbrances on the home, such as a lien or mortgage. For example, if a home is worth $200,000 and it has a mortgage of $150,000, the equity available is $50,000.
To prove you have the equity to afford a Property Bond, a number of required documents must be submitted to the court. Below is an example of what may be required.
• Warranty or Quit Claim Deed
• Most current property tax receipt
• Current Notice of Valuation of the property by the County Assessor
• Written letter from the mortgage company indicating current balance
• Evidence of Title issued by a title insurance company (with all liens or encumbrances)
• Deed of Trust naming the Clerk of Court as the beneficiary
• All parties on the deed as owners must be present to post a Property Bond
When a property bond is issued, the court secures a lien against the property held as collateral. As with any bail bond, if the you fail to appear for your court dates, the bail is forfeited. In this case, foreclosure may be brought against the property at which point the court can collect on the lien and the bail amount owed.
Not all jurisdictions accept property bonds and those that do may have different requirements and processes. Check with your court, bail bondsman, or bail bonds agent for jurisdiction specific requirements and related information.
For questions about this and other bail bonds, contact Dennis Blackwell Bail Bonds at (719) 390-3930, open 24 hours a day, 7 days a week.