Subdivision Bond

A subdivision bond is a form of guarantee that individual landowners, developers and builders will complete the improvements at their own expense. It is usually required by the local authorities where the property will be developed. The improvements may include, but are not limited to, sidewalks, streets, gutters and sewer systems.

 

Subdivision bonds should not be mistaken as site improvement bonds. Site Improvement bonds cover existing buildings and the upgrades that will have to be done to protect the public property whereas subdivision bonds cover new buildings and issues pertaining to new buildings.

 

Due to the rising demand of “planned communities”, the demand for subdivision bonds have also increased in recent years. It is important to note that subdivision bond amounts may differ from state to state and rely on the size of the project involved. Due to the industry characteristics, it may be slightly more challenging to obtain a subdivision bond during tough economic times. Regardless, experienced agents should be able to follow through with these bonds. Our representatives at Market Financial Group is one of the few leaders in that area and we represent some of the most reliable carriers for subdivision bonds.