- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If a city, county, or planning board asked you for a subdivision bond before approving a development, send us the requirement. We’ll check the form and amount and tell you what the surety needs for a quote.
A subdivision bond is a surety bond that guarantees a developer will complete required improvements connected with a subdivision or development. Those improvements can include roads, sidewalks, utilities, and stormwater facilities, as the approval requires.
The municipality, planning board, or approving agency sets it, often based on the estimated cost of the required improvements. Use the amount in the approval or ordinance.
Some jurisdictions allow the amount to be reduced as work is completed and accepted. Ask the municipality how that works.
Some municipalities accept a surety bond, a letter of credit, a cash escrow, or a combination. What is accepted is up to the municipality.
A bond can free up cash and credit capacity that would otherwise be tied up. Ask your municipality which options it takes.
The surety wants to know whether the developer can finish the work. It may look at credit, financial statements, experience with similar projects, the budget, and the project schedule.
Because the improvements can be large, a surety may ask for more information than for a simple license bond.
You normally pay a premium for the bond, not the full bond amount.
The price depends on the bond amount, the developer’s financial strength and experience, the project, and the surety company. We cannot quote until we see the municipality’s requirement and your information.
Usually the surety will look at credit and the developer’s financial information, and sometimes the project budget.
If credit or financials are not strong, tell us up front. Options depend on the bond size and the surety markets available.
Send us the approval paperwork. The most useful items are:
It depends. A smaller bond with a complete file can move more quickly. A larger development, an unusual form, or a request that needs financial statements can take longer.
If an approval or recording date is waiting on the bond, tell us when you apply.
If this is not the bond you were asked for, these pages may help.
Yes, and often by county or city as well. Municipalities set their own forms, amounts, and release rules. Do not assume a form accepted by one jurisdiction works in another.
Send us the approval paperwork or the municipality’s bond form. We’ll tell you what the surety needs next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
