Chapel Hill Land Improvement Bond

Chapel Hill North Carolina Land Improvement Bond

In the Town of Chapel Hill, North Carolina, the Land Use Management Ordinance requires developers to obtain a surety bond prior to plat approval in order to ensure that all of the required public improvements are completed. With this provision, developers may officially record their plat and sell real estate prior to completing all public improvements, once they have obtained appropriate coverage from a Land Improvement Bond.

PURCHASE CHAPEL HILL LAND IMPROVEMENT BOND

With Jet, your bond can be applied for in minutes. As a direct carrier, Jet will be with you through the project, speeding up approval for bonding and even helping defend you against claims, should they arise.

What Is the Lowest Price for the Land Improvement Bond?

The cost of the bond is only a small percentage of the bond limit, determined by the Chapel Hill Town Manager. Jet will potentially need to factor in the personal credit and financial health of the developer to determine eligibility and price. 

At Jet, we are changing the application process for surety bonds to get you the bond you need in minimal time and with no headaches.

How Is the Bond Amount Determined?

The bond amount will be determined by the scope of the public improvements involved in the subdivision, and must be agreed upon by the Town Manager.

Can Jet File the Land Improvement Bond to the Town of Chapel Hill for Me? 

We absolutely can! Once you have checked out and completed your purchase, Jet ships the original version of the bond to the Planning Department for you. We will deliver an electronic copy to you for your records at the same time.

When you buy your bond with other surety companies, they may charge you shipping fees to send you the bond, which leaves you on the hook to deliver the bond to the Town of Chapel Hill, again at your expense. We don’t like that deal at Jet, so we made it better for you!

You still have the option to receive the original bond and take care of the delivery yourself if that is your preference. Simply select that option at checkout. Take note: to be properly filed, the bond must be delivered to the Planning Department at the following address:

Town of Chapel Hill
Planning Department
405 Martin Luther King Jr. Blvd
Chapel Hill, NC 27514

What Happens If I Need to Cancel My Bond?

The Land Improvement Bond once posted, is considered continuous by the Town of Chapel Hill and cannot be cancelled until final inspection is passed, and the bond is released by the Town Manager.

How Does a Developer Avoid a Bond Claim?

In order to avoid any disciplinary action, developers must comply with the Town of Chapel Hill Code of Ordinances and build out all public improvements as they are described in the approved subdivision plan. To satisfy the conditions of the bond and be released from the liability, the following must occur:

  1. Public improvements must be complete in their construction 
  2. Completed work in the approved preliminary plan must match the recorded map of the subdivision.
  3. Improvements must conform to the construction standards of their respective trades

Bond claims occur when developers do not conform from the approved subdivision plan in their actual construction, or do not meet regional construction standards, or in any case that requires the county to complete (or repair) the project.

What Happens If I Get a Bond Claim?

If the Town Manager finds that public improvements were not completed in accordance with the approved subdivision plan, or fall short of the building industry standards and the developer does not correct the fault, they may elect to raise a claim directly with Jet. To assess the validity of the claim, Jet will have the number of days agreed to in the signed bond form to thoroughly investigate the merits of the claim. Jet will help to defend you against the claim, in so far as that is possible based on the circumstances. 

If the claim is found to be valid, Jet is obligated by statute as the fiscally responsible party to pay Chapel Hill (the “claimant”) up to the total amount of the bond. The surety carrier is similar to a  line of credit in this respect, and the developer (the “principal”) remains responsible for reimbursing Jet for the amount paid to the Town of Chapel Hill.

Why Is the Land Improvement Bond Required in Chapel Hill?

The Land Improvement Bond exists to provide a financial guarantee to the Town of Chapel Hill that subdivisions will be built in accordance with the city’s approved plans, and to the recognized building standards. This offers an advantage to developers who wish to record their subdivision and sell real estate prior to project completion, and protects consumers by guaranteeing the quality of their subdivision.

How Does the Application Process Work With Jet?

Jet streamlines the application process, so you can apply for your bond hassle-free and completely online, by providing some basic information about your business. Once you provide this information, we will evaluate your application and quickly get back to you.

Above a $15,000 bond limit Jet may need the following additional information in order to provide your quote such as:

Once you have completed your purchase, a purchase receipt and copy of the bond are delivered to you.

PURCHASE CHAPEL HILL LAND IMPROVEMENT BOND

When Does the Land Improvement Bond Obligation End?

Once the Land Improvement Bond posted by the surety company, it is considered “in force” until released by the Town Manager. Liability for the developer and surety remain in effect until a successful final inspection is conducted. 

Jet offers the bond in increments of one, two and potentially even three years. If extending beyond the original term of the bond, renewal will be required, along with the associated premiums.

Are There Other Bonds That a Developer Needs?

Depending on the scope of the subdivision, developers may be required by the Building and Development Services Department to post additional surety bonds covering right-of-way incursions and erosion control. Check out other North Carolina construction bonds by clicking here.

Chapel Hill North Carolina Land Improvement Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: