Mecklenburg County Subdivision Bond

Mecklenburg County North Carolina Subdivision Bond

In Mecklenburg County, North Carolina, the Land Use and Environmental Services Agency (LUESA) requires developers to obtain a surety bond in cases where the developer requests plat approval prior to completing all improvements. The intent is to assign fiscal responsibility, ensuring that the public improvements are built out per the subdivision plan. Jet’s Subdivision Bond stands as a financial guarantee for the County of Mecklenburg; placing Jet as the fiscally responsible third party, committing to reimburse Mecklenburg County if they are forced to complete the improvements on behalf of the developer.

PURCHASE MECKLENBURG COUNTY SUBDIVISION BOND

Jet is taking on the surety bond application process, streamlining it and removing the red tape. We cut out the middlemen who can cost you more in the form of fees and commissions. Also, Jet is a direct carrier; we are with you from application, throughout your project, to the release of liability, and of course defending you should claims arise.

How Is the Subdivision Bond Cost Determined?

Bond cost is driven by the required bonding amount, a value estimated by the county’s Engineering Department, including all costs assumed to finish the improvements for a subdivision. Jet may also consider personal credit score, experience in business, and scope of project to arrive at a final cost for the bond. Once approved the bond cost is a small percentage of the bonding limit.

Jet’s aims to deliver you the bond you need, at a low price, minus the headaches. That saves you money, and gets you back to what you do best: operate your business. Leave the rest to us.

Can Jet File the Bond With the County of Mecklenburg for Me?

You bet! Once you check out and complete your purchase, we will deliver the original version of the bond to Mecklenburg County’s Land Use and Environmental Services Agency for you. We will also provide you with an electronic copy of the bond for your records as well.

When other carriers provide the bond, they ship to you, charge you shipping, and leave the filing with LUESA up to you. Not at Jet!

Of course, if you prefer to receive the original bond, that option is available at checkout. In order for the bond to be properly filed with LUESA, all documentation must be delivered to the following address:

County of Mecklenburg
Land Use and Environmental Services Agency
P.O. Box 1400​
Charlotte, NC 28201-1400

Can I Cancel My Bond and Get a Refund?

It is important to note that because the Subdivision Guarantee Bond is considered continuous until released by Mecklenburg County, another surety bond must be in place in order to cancel the bond with Jet. (In addition, bond fees will be charged for posting a new bond.)The bond is also only cancelled once the contractor or property owner has no outstanding fee balance with LUESA, and 30 days have passed since cancellation notice.

When you cancel your bond with Jet, the process is straightforward. All you need to do is notify Jet with your request to cancel, and Jet will process the cancellation and return any unearned premium.

The bond remains active until 30 days after the surety notifies LUESA of the cancellation. Jet must take those 30 days into account when calculating the refunded premium amount.

How Does a Developer Avoid Bond Claims?

Developers can avoid claims against the Subdivision Bond simply by building to the approved subdivision plan, and in alignment with the Mecklenburg County Subdivision Ordinance. Land improvements must achieve three conditions to be accepted by the County and avoid claim:

  1. Public improvement construction is complete
  2. Work performed matches the preliminary plan and the recorded map of the subdivision.
  3. Work performed meets standards of the Subdivision Ordinance

If any of the conditions above are not met, then LUESA will likely give the developer the opportunity to rectify the situation, and the developer should make every effort to do so. Only if the developer is unable or unwilling to correct the situation will LUESA draw against the bond, assuming they need to complete the improvements themselves.

What Happens If I Get a Claim on My Subdivision Bond?

If LUESA concludes that the developer has abandoned its subdivision improvements or will not resolve issues found in inspection, it is within its rights to pursue a claim directly with Jet. At that point, Jet will have 15 days to thoroughly investigate the circumstances and verify the merits of the claim, defending you as much as possible. 

If the claim ultimately is determined to be valid, Jet is obligated by its agreement in the bond to 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.

Why Does Mecklenburg County Require the Subdivision Bond?

The Subdivision Guarantee Bond exists to provide a financial guarantee to Mecklenburg County that subdivisions will be built in accordance with the city’s approved plans, and to the recognized building standards. By providing the bond, Jet Insurance Company presents itself as a fiscally responsible third party to the County, ensuring that a line of credit is established, should the county need to finish public improvements for a subdivision. 

Developers benefit from the bond, as it allows them to record their subdivision plat and sell real estate prior to completion of all improvements. Homebuyers do too, as the build quality of their subdivision is guaranteed by the bond.

How Does the Application Process Work With Jet?

Jet approached the bond application process to save you as much time as possible. We will ask for some basic business information and begin assessing eligibility and cost for the bond. Once you provide this information, we will evaluate your application and promptly get back to you with a quote.

For bond limits above $15,000, Jet may need to request some amplifying business about your business and your project to furnish the best possible quote. This may include:

Once your purchase is complete, Jet will provide you a receipt and a copy of the bond for your records.

PURCHASE MECKLENBURG COUNTY SUBDIVISION BOND

When Does the Subdivision Bond Obligation End?

When Jet files the Subdivision Guarantee Bond with Mecklenburg County, it is considered continuous until the liability is released by the County. Liability for the developer and surety will be released once a project has conducted a successful final inspection and received release from the Mecklenburg County Engineering Department. 

When posting surety bonds in Mecklenburg County, a $370 fee is required to establish a new bond, reduce the existing bond, or replace the bond with a substitute surety company. Additionally, after a surety bond extends five years from original filing, this $370 bond fee is charged annually.

Jet provides the bond in one-, two-, and even three-year increments, depending on the expected duration of the project. Renewal would be required if the project extends past the original purchase term.

Are There Other Bonds That a Developer Needs?

When engaging in a project in Mecklenburg County, property owners are required to establish an account with Mecklenburg County to cover all applicable permitting fees and potential re-inspection fees. See the Mecklenburg County Land Use and Construction Bond.

Mecklenburg County North Carolina Subdivision 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: