A bond in real estate refers to a certificate representing a debt obligation that specifies the repayment terms and conditions under which the debt is undertaken.
A Completion Bond is a legal instrument designed to guarantee the completion of a development according to predefined specifications. It extends beyond a performance bond by ensuring the production of the entire development without reference to specific contracts and without requiring payment to the contractor.
A performance bond is a type of surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.
In real estate, a surety is an individual or entity that guarantees the performance of obligations or responsibilities, usually relating to contractual agreements. This acts as a safety net ensuring that the party performing the work will fulfill their commitments, or the surety will step in to cover any losses or damages.
