Surety Bonds for Subdivision Contract Bonds
What is a Subdivision Contract Bond?
Landowners, developers or builders must purchase a subdivision contract bond when upgrading or changing certain portions of their property. They are often required to do so by local government agencies. The subdivision bond guarantees that responsibilities are performed according to terms mentioned in the bond. The subdivision bond guarantees that a developer will put in agreed-upon improvements like water or sewer lines, street lights, and sidewalks. If a developer files for bankruptcy, the surety will fulfill the obligation by either reimbursing the township or municipality or by hiring another business to finish the job satisfactorily.
If the contractor in any way breaks the terms and conditions of the subdivision bond, those who are harmed can make a claim. If the claim is found to be authentic, the surety will provide the injured party with reparations up to the bonded amount and look for reimbursement from the principal.
When must a subdivision contract bond be purchased?
When a landowner, developer or builder is upgrading or changing certain portions of their property.
What are some examples of upgrades or changes to property that need to be covered by a subdivision contract bond?
Some examples are water or sewer lines, street lights or sidewalks.
Get a Subdivision Contract Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!