Luxury Home Completion Bond

[Bond Guy]

I am a real estate agent working with a client who wants to but a luxury build to suit home. The cost of the finished home is approximately fifteen million dollars. The property is located in San Francisco and is currently an unimproved lot with approved plans for a 13,000 square foot home. The contractor/developer says it will take approximately 18 months to build. I would like to see a performance bond and payment bond for the contractor/developer be part of the purchase transaction and paid for out of escrow. Does your company sell bonds for this type of situation? How do I learn more about this?

[GBS]

The Surety Information Office of the U.S. Government has some great information and comparisons on insurance vs surety bonding for private construction. The web site is Surety, maintenance and performance Bonds. Good luck!

[Admin]

GBS, The SIO is not a government organization. It is a surety association created and funded by members and donations from the surety industry. I edited the link you provided, as the original address was not valid.


As for the original question...Bonding companies typically do not want to deal with private obligees, as they often do not understand suretyship and payment can more easily become an issue compared to working with Uncle Sam.