Subdivision Surety Bond

A Subdivision surety bond is a performance bond required by the state or locality in which the subdivision will be built.  It runs to the city, county or state that guarantees the subdivision will be built according to a contract between the subdivision owner and the jurisdiction requiring it in a timely manner. The principal typically agrees to finance and construct the subdivision as well as certain improvements such as streets, sidewalks, curbs, gutters, sewer and drainage systems.