Subdivision Bonds

Depending on local statutes, developers or contractors working on residential or commercial real estate projects may be required to provide a subdivision bond to guarantee they will meet their performance obligations on public improvements. These bonds may also be referred to as site improvement bonds, plat bonds, developer bonds or completion bonds.

Underwriting Subdivision Bonds

Merchants' Specialty Solutions team applies common sense underwriting solutions for subdivision bond requests by utilizing flexibility in pooling business assets and personal assets to provide program limits for developers. Our unique combination of expertise and tools designed specifically for subdivision bonds makes us a ready market. Our agent partners and their developer clients can expect an easy efficient process.

Merchants' Specialty Solutions provides:

  • a team of experts dedicated to underwriting subdivision bonds,
  • a quick application/indemnity agreement for bond limits up to $2 million,
  • a streamlined subdivision questionnaire to gather the most relevant information, 
  • convenient e-signature options to secure indemnity, and
  • an instant contract surety bond solution for commercial and residential developers via our Rapid Access Program (RAP).

Documents required to establish surety credit for developers:

  • Completed Request for Subdivision Bond Credit questionnaire
  • Company financial statements for last three years
  • Sales and work in progress reports for existing projects
  • Personal financial statements of all principals
  • Project information if specific bonds are needed

If you have questions about subdivision bonds, contact Merchants' Specialty Solutions team and let our experts guide you through the process.

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Merchants has become my go-to market for subdivision bonds. It has been a great experience. The team has been wonderful to work with and the process is very easy.