(a) Whenever a bond with a security interest in real property is submitted, the individual surety shall provide-
(1) A mortgage title insurance policy, in an insurance amount equal to the amount of the lien, or other evidence of title that is consistent with the requirements of Section 2 of the United States Department of Justice Title Standards at http://www.usdoj.gov/enrd/2001_Title_Standards.html . This title evidence must show fee simple title vested in the surety along with any concurrent owners; whether any real estate taxes are due and payable; and any recorded encumbrances against the property, including the lien filed in favor of the Government under paragraph (d) of this subsection. Agency contracting officers should request the assistance of their designated agency legal counsel in determining if the title evidence is consistent with the Department of Justice standards;
(2) Evidence of the amount due under any encumbrance shown in the evidence of title;
(3) A copy of the current real estate tax assessment of the property or a current appraisal dated no earlier than 6 months prior to the date of the bond, prepared by a professional appraiser who certifies that the appraisal has been conducted in accordance with the generally accepted appraisal standards as reflected in the Uniform Standards of Professional Appraisal Practice as promulgated by the -
Appraisal Foundation
1029 Vermont Avenue, NW
Washington, DC 20005.
(b) Failure to provide evidence that the lien has been properly recorded will render the offeror nonresponsible.
(c) The individual surety is liable for the payment of all administrative costs of the Government, including legal fees, associated with the liquidation of pledged real estate.
(d) The following format, or any document substantially the same, shall be signed by all owners of the property and used by the surety and recorded in the local recorder’s office when a surety pledges real estate on Standard Form 28, Affidavit of Individual Surety.
Lien on Real Estate
I/we agree that this instrument constitutes a lien in the amount of $ _________ on the property described in this lien. The rights of the United States Government shall take precedence over any subsequent lien or encumbrance until the lien is formally released by a duly authorized representative of the United States. I/we hereby grant the United States the power of sale of subject property, including the right to satisfy its reasonable administrative costs, including legal fees associated with any sale of subject property, in the event of contractor default if I/we otherwise fail to satisfy the underlying ( ) bid guarantee, ( ) performance bond, ( ) or payment bond obligations as an individual surety on solicitation/contract number ________________. The lien is upon the real estate now owned by me/us described as follows:
(legal description, street address and other identifying description)
In witness hereof, I/we have hereunto affixed my/our hand(s) and seal(s) this ___ Day of _____20 __.
Witness:
_____________________ ___________ (Seal) ___________ (Seal)
I, __________________, a Notary Public in and for the (City) _____________, (State) _______, do hereby certify that _______________, a party or parties to a certain Agreement bearing the date ____ day of ________ 20 __, and hereunto annexed, personally appeared before me, the said ______________ being personally well known to me as the person(s) who executed said lien, and acknowledged the same to be his/her/their act and deed.
Given under my hand and seal this ____ day of _____20 __.
_____________________________
Notary Public, State
My Commission expires:
