In the City of Charlotte, North Carolina, the Subdivision 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 record their plat and begin real estate transactions before project completion, once they have obtained a surety bond.
With Jet, your bond can be purchased in minutes. Jet cuts out the middlemen who slow down the process and can cost you more in the form of fees and commissions. As a direct carrier, Jet will be with you through the project, and even help you defend against claims, should they arise.
At Jet, the Land Development Bond starts as low as $100. The cost of the bond will depend on the bonding amount determined by the City of Charlotte Land Development Department’s Review Engineer (with help from an estimate form provided by the developer) The personal credit and potentially the financial strength of the developer can factor into the eligibility and price of the bond. Below is an example of the preferred pricing for this bond.
Bond Limit | Cost |
---|---|
$10,000 | $100 |
$25,000 | $250 |
$50,000 | $500 |
At Jet, you can count on getting the best price for your bond and with less hassle.
Yes, Jet can! Once you purchase your bond, Jet will immediately ship the original bond to the Land Development Division for you. An electronic copy of the bond will immediately be emailed to you for your records as well.
Other carriers charge you shipping fees to send you the bond, and then leave shipment to the City of Charlotte up to you at your expense. Not so with Jet!
If you would like the original bond mailed directly to your location, then you can select that option at checkout. Please note the bond must be filed with Land Development Division at the following address:
City of Charlotte
Engineering and Property Management Dept.
Land Development Division
Attn: Bond Administration
600 East Fourth Street
Charlotte, North Carolina 28202-2844
The Land Development Bond once posted, is considered continuous by the City of Charlotte and cannot be cancelled until final inspection is passed, and the bond is released by the Bond Administrator.
In order to avoid a claim against the surety bond, developers need to comply with the City of Charlotte Subdivision Ordinance and complete the public improvement elements of their approved subdivision plan. This means that at the time of final inspection, three conditions must be met:
Bond Claims may arise when a developer departs from the approved subdivision plan in their actual construction, or does not meet regional construction standards, thereby requiring the county to complete (or repair) the project at their expense.
If the City of Charlotte 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, it may process a claim directly with Jet. To assess the validity of the claim, Jet will have 15 days to thoroughly investigate the circumstances, and defend you as much as possible.
If the claim is deemed valid, Jet must pay the claim up to the total amount of the bond, within 10 days of determining the amount. The surety acts as a line of credit in this case, and the developer (the “principal”) is responsible for reimbursing Jet for the amount paid.
The Land Development Bond exists to provide a financial guarantee to the City of Charlotte 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.
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, and the City of Charlotte’s Land Development Surety Preferences Selection Form, 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 pay your premium, your receipt and bond copy will be available to you.
The bond amount will be determined by the scope of the public improvements involved in the subdivision, and developers estimate this amount using the City of Charlotte’s Surety Estimation Worksheet. Once the developer has submitted their estimate, the Review Engineer will review within 15 days and provide the bonding requirement to the developer via the County Bond Administrator.
The Land Development Bond is considered continuous until all required public improvements for a subdivision are completed. Liability for the developer and surety will be released once a project has conducted a successful final inspection and received release from the city’s Site Inspector. Release will be communicated to the developer and surety via the bond administrator.
Surety bonds are required to be between one and two years in effective duration, so a project that extends beyond two years will require renewal with the Bond Administrator, and payment of a $650 bond fee. After a surety bond extends four years from original filing, this bond fee is charged annually.
Bonds are available in one-, two-, and potentially even three-year increments. The bond will need to be renewed if the project extends past the original purchase term.
A developer in Charlotte doesn’t need additional permit bonds but some contractors on the job, such as landscape, irrigation, and electrical contractors, are required to hold a bond for their license. Check out other North Carolina construction bonds by clicking here.