A subdivision bond is required by city and county governments before a developer can record a subdivision plat or pull building permits. The bond guarantees that the developer will complete all required public improvements—streets, curbs, gutters, sidewalks, water and sewer lines, storm drainage, and street lighting—to the jurisdiction's standards.
When a developer plats new lots for sale, the local government wants assurance that buyers will eventually have functional infrastructure. Rather than waiting for the developer to finish before approving the plat, the municipality accepts a subdivision bond as a financial guarantee. If the developer walks away or runs out of money, the surety company steps in with the funds needed to complete the public improvements.
Subdivision bond amounts are based on the engineer's estimated cost to complete the public improvements, often with a contingency of 10–25% added by the jurisdiction. Bonds typically range from $50,000 for small infill projects to several million dollars for large master-planned communities. The bond stays in place until the municipality formally accepts the improvements—which can take one to three years after construction is finished.
Subdivision bonds are heavier underwriting than license bonds because the surety is guaranteeing project completion, not just compliance with a regulation. Underwriters review the developer's personal and business financial statements, project pro forma, construction budget, financing source, contractor selection, and prior subdivision experience. Strong personal indemnity from the principals is typically required.
Use the form below to start your subdivision bond application. We work with multiple A-rated sureties who specialize in land development bonds, so we can shop your file to the markets most likely to write your project at the best terms.
Fill out the questionnaire below and we'll quote your bond with multiple A-rated surety carriers. Most applications receive a response within one business day.