Charlotte Land Development Bond

Charlotte North Carolina Land Development Bond

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.

APPLY FOR YOUR 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.

What Is the Lowest Price for the Charlotte Land Development Bond?

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 LimitCost
$10,000$100
$25,000$250
$50,000$500
Charlotte Land Development Bond Pricing

At Jet, you can count on getting the best price for your bond and with less hassle.

Can Jet File the Land Development Bond to the City of Charlotte for Me?

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

What Happens If I Need to Cancel My Bond?

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.

How Does a Developer Avoid a Bond Claim?

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:

  1. Public improvement elements are completed (minus minor punch list items arising from final inspection)
  2. Work is completed in accordance with the approved preliminary plan and the recorded map of the subdivision.
  3. All work conforms to the construction standards of the City of Charlotte Engineering and Property Management, Department of Transportation, and Subdivision Ordinance.

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.

What Happens If I Get a Bond Claim?

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.

What Is the Purpose of the Land Development Bond?

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.

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, 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.

How Is the Bond Amount Determined?

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.

When Does the Land Development Bond Obligation End?

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.

Are There Other Bonds That a Charlotte Developer Needs?

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. 

Charlotte North Carolina Land Development 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: