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krm · 09-26-2008, 09:52 AM

If the developer wants to be able to sell the product before completion the AG requires a performance bond be in place. Depending on the type of development, it can vary for example in commercial applications many times a reclamation bond is all that is required, and a performance bond is required for what ever effects the towns well being. In a subdivision, the AG requires one, but the town also requires one so that the lot owner can pull a building permit before all the infrastructure is complete, it is a way of protecting the lot buyer. It should also be said that it doesn't have to be a bond it can be a LOC or cash.

09-26-2008, 09:52 AM	#2
krm Member Join Date: Apr 2007 Posts: 39 Thanks: 1 Thanked 0 Times in 0 Posts	Pre sales If the developer wants to be able to sell the product before completion the AG requires a performance bond be in place. Depending on the type of development, it can vary for example in commercial applications many times a reclamation bond is all that is required, and a performance bond is required for what ever effects the towns well being. In a subdivision, the AG requires one, but the town also requires one so that the lot owner can pull a building permit before all the infrastructure is complete, it is a way of protecting the lot buyer. It should also be said that it doesn't have to be a bond it can be a LOC or cash.