Published: April 01, 1995

Bail Bond Alert

A fact sheet that discusses such questions as "What is a bail bond?" and "How does a bail bond work?" When a friend or relative is arrested, you may be asked to put up your home as security for a bail bond.

This document may also be available in the following languages: Chinese, English, Korean, Russian, Spanish, and Vietnamese, among others. An Adobe Acrobat (pdf) file (optimized for printing) may also be available in some or all of the above languages. To see what languages and formats this document is currently available in, please check our online Multilingual Library.

Note: Last revision 1995. Use this information as a general guide only; consult with a local consumer group for laws specific to your state.

BAIL BOND ALERT

When a friend or relative is arrested, you may be asked to put up your home as security for a bail bond. The following information will help you decide whether or not you should.

What is a bail bond?

A bail bond is a financial guarantee that a criminal defendant will show up for court appearances and the trial. It is a form of insurance policy for the court. If the defendant does not show up, the amount of the bond is paid to the court and a warrant is issued for the defendant's arrest. If the defendant is found, the court may reinstate the bond, or it may order the bond amount to be forfeited.

How does a bail bond work?

The court will set the amount of bail. Under California law, a bonding (surety) company provides a type of insurance policy that guarantees payment of the bond to the court if the defendant does not show up for a court appearance or trial. Bonding companies sell these insurance policies through agents or bail bondsmen(women), who charge a premium plus a service fee. The premium is a percentage of the total bond amount, typically about 10%. On a $50,000 bond, the premium would be about $5,000 plus the service fee, which could be several hundred dollars.

Why will I be asked to put my house up as security?

The bonding company wants to make sure that if it has to pay the full amount of the bond to the court, it can get the money back from you. If you have other assets, such as stocks, investment bonds, jewelry, vehicles or other valuables, these might be acceptable to the bail bondsman(woman) and bonding company. But most bonding companies prefer real property as security for a bail bond.

What does it mean to "put my house up as security" for a bail bond?

It generally means that you will sign a deed of trust against your property naming the bonding company as beneficiary. The trust deed will be recorded with the County Recorder as a lien against your property. If you default (the bonding company has to pay the full bond amount to the court and looks to you for repayment), the bonding company can place your home in foreclosure and sell it at a public auction to recover the money it paid to the court. You will also be in default if you fail to pay the bond premiums plus accrued interest when they become due. Most bond premiums are for a period of one year. Since many cases last more than one year, you must pay the renewal premium plus any accrued interest every 12 months.

When the case is over, is the lien against my property automatically removed?

Not necessarily. But there are several things you should do to make sure the lien is removed. First, whether the case is dismissed or results in a not guilty decision or ends with probation or a conviction and jail sentence, go to the final court appearance with the defendant and make sure the defendant's attorney asks the court to order the bond "exonerated" (released). The bonding company will not remove the lien against your property if the court fails to make this order. Second, get a certified copy of the court's order exonerating the bail bond. Ask the bonding company what other documents it needs to release the lien against your property and obtain those documents as well. Third, send a copy of the order and the other documents to the bonding company, along with your written request that the lien against your property be released. If the court has ordered the bond exonerated and you have paid all premiums due plus accrued interest, the bonding company has 30 days after the bond has been exonerated to send you a "Reconveyance" (the document which releases the lien against your property). If the bonding company fails to do so, see an attorney: the bonding company may be liable for your damages plus a $300 penalty plus attorney's fees. Fourth, as soon as you receive the Reconveyance, have it recorded with the County Recorder.

What if I forget about the bail bond and the lien against my property?

You are taking a big risk. If the bail bondsman(woman) or bonding company fail to release the lien against your property, you will have trouble selling or refinancing your property or obtaining a loan, and your credit record may be effected. Many times, years pass and the bail bondsman(woman) or bonding company move or go out of business. It may become impossible to find someone with authority to release the lien against your property and you will end up paying substantial legal fees to have the lien removed. Also, all court records are eventually destroyed. If you failed to obtain a certified copy of the court's order exonerating the bail bond and you wait too long to take action, you will not be able to prove that the court in fact did exonerate the bail bond. If you have failed to pay renewal premiums plus interest as they become, you may owe the bonding company a substantial amount and you will be unable to take out a loan against your property to pay off the bonding company.

WARNING!

Anytime you put your house up as security for a bail bond, you are taking a big risk. You may feel strongly about giving the defendant your support, but you should be sure you understand the consequences. No matter how well you know the defendant, there is no guarantee that she or he will show up for court appearances and trial. If you are not sure about what you are doing, don't put up your house as security for a bail bond.

This publication was created by Legal Aid Foundation of Los Angeles

Links from Article

For More Information

Download PDF 

No Download Available

Keywords

Bail Bonds, Bacef, Lien Against My Property

Sponsors

BACEF

Notes

Filed Under

Crime/legal   ♦  

Copyright

© 1995 Consumer Action. Rights Reserved.