What is a Subdivision Bond?
A subdivision bond is a form of insurance purchased by a landowner when upgrades or changes are required by a local government authority. The subdivision bond guarantees the work is completed well and according to terms. The bond will reimburse those who are victims of fraud or illegal activity. In some ways, this bond is similar to the site improvement bond.
Before builders or others purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.