A subdivision bond guarantees that builders, developers, and individual landowners complete improvements made to a subdivision property. This bond, required by local authorities, usually guarantees that the improvements will be made at the expense of the developer and principal of the bond.
The subdivision bond market is a volatile for developers regardless of size. While larger developers have been able to secure subdivision bonds with ease due to political influence and deep pockets, these days the bond market is more selective. In short, today there are fewer choices of bonding companies, and agents to procure these bonds through. Because of this, it is critical to find agent who understand this market, it can make the difference between being approved or declined.