What Is a Replevin Bond?
Definition of Replevin
The definition of replevin is a court action to determine who rightfully owns a piece of contested property. Before a court hearing, a plaintiff can take possession of the contested property after obtaining a replevin bond. If the plaintiff then goes on to win the case, they will retain ownership of the property. If the defendant wins the case, the plaintiff must give up the property – in its original condition.
Suppose the plaintiff turns over the property in worse condition than before they took ownership or refuses to forfeit the property altogether. In that case, the defendant can file a claim against the replevin bond. The claim would be worth the damages to the property or the entire property value.
What is an example of replevin?
Imagine moving out of your landlord’s place without paying the last month’s rent. Your landlord keeps some of your personal property to compensate for the loss. In this case, you (the plaintiff) could sue your landlord (the defendant) to reclaim the property you believe to be rightfully yours. You would then need to obtain a replevin bond to take possession of your property before the hearing.
Get Your Replevin Bond:
Quick Takeaways
- Replevin is a court action to determine the rightful owner of a contested property.
- Before a court hearing, a plaintiff can take possession of the contested property after obtaining a replevin bond.
- This bond ensures the plaintiff complies with the court’s final decision.
- The courts will notify you if you need this bond and what amount.
How do replevin bonds work?
In a replevin court action, the plaintiff can take temporary possession of a property before a hearing begins. The bond guarantees that the plaintiff behaves legally and ethically – regardless of the case’s outcome.
Like many other court bonds, replevin bonds involve three parties:
- Surety: The replevin bond provider
- Principal: The plaintiff who must purchase the bond
- Obligee: The court that requires the bond
This bond ensures the plaintiff complies with the court’s final decision in the case. If the plaintiff refuses, the defendant has the right to file a claim on the bond. The surety may cover the costs to settle the surety bond claim upfront, but the plaintiff must later repay the surety in full. The defendant may file a claim up to the full bond amount (which should be equal to the property’s value).
When do you need a replevin bond?
As a plaintiff in a replevin case where you’re suing the defendant, you may need to secure a replevin bond. This bond allows you to take temporary possession of a property you believe is rightfully yours. Once you purchase the bond, the court may order the defendant to give up the property – at least until the final judgment.
The courts will notify you if you need this bond and in what amount.
How much do replevin bonds cost?
You will pay a percentage of the bond amount required. As we mentioned above, the court will determine the bond amount, typically equal to the value of the property in question. If you have strong financials (professional and personal) and a high credit rating, you could get a replevin bond for as little as 1% of the bond amount.
Keep in mind that these bonds often also require 100% collateral.
What’re my requirements to apply for a replevin bond?
Here’s an overview of what you’ll need to complete your replevin bond application successfully:
- Understand the requirements set by your state, court, and case.
- Supply the documentation the court gave you specifying the type of bond you need.
- Provide personal financial information and business financial statements if applicable.
- Put up collateral equal to the full bond amount (if required).
Frequently Asked Questions
What are other names for replevin bonds?
This bond may go by other names, including recovery bond, claim and delivery bond, detinue bond, or possessory bond.
What are the different types of replevin bonds?
Counter Replevin Bonds
In addition to standard replevin bonds, there are counter replevin bonds. The defendant is the party that can purchase this type of bond to counteract the plaintiff’s actions. In other words, a counter replevin bond allows a defendant to prevent a plaintiff from seizing the property before the hearing. The defendant can then retain possession of the property in dispute.
Sequestration Bonds
Sequestration bonds are similar to replevin bonds. A marshal or sheriff obtains the power to seize a contested property by purchasing this bond. The goal is to prevent the defendant in the case from selling off the property or taking it outside the court’s jurisdiction.
Can I get this bond with bad credit?
Due to the high risk involved with these types of bonds, it can be challenging to get bonded if you have a low credit score or unstable finances. However, getting bonded for a higher premium rate may still be possible.
Apply for a Replevin Bond in Your State
Apply for your replevin bond by completing our simple bond application. We’ll ask for a copy of your court order or judgment, financial documents, and a credit release form. Once we’ve received and approved your application, you can pay for and print your bond. Apply online or call us at 888-435-4191. One of our agents can quickly walk you through the process to get you bonded ASAP.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.