Offering Pay on Demand Sub-Divisions Bonds for Developers
FCA is Canada’s Developer Surety Expert Since 1919
FCA has been providing Canadian companies with surety bonds since 1919. We have set the industry standard for turnaround time for both new and existing clients. We pride ourselves in ensuring our clients never miss out on an opportunity.
While letters of credit are commonly used, usage of subdivision bonds is growing across Canada. Cities that have accepted subdivision bonds include:
- City of Edmonton
- City of Calgary
- City of Grande Prairie
- City of Surrey
- City of Pickering
- City of London
- City of St. Thomas
- Municipality of Chatham‐Kent
- Town of Innisfil
This list is continually growing due to the outreach of the Surety Association of Canada and the Ontario Home Builder’s Association. Be sure to check with FCA for information on your specific municipality.
The application process for a Sub Division Bond is similar to the requirements for applying for construction financing:
- Most recent financial statements for the development company
- A copy of the project budget including hard and soft costs
- A copy of the construction financing agreement or letter of intent
- A copy of site plan or sub division agreement
- Land title details and appraisal if available
- Any Environmental Audits and Geotechnical Reports
- A completed Developer Surety Application
- A completed Personal Net Worth statement for each of the project shareholders
We highly recommend you work with an experienced Developer Surety brokerage such as FCA to ensure you are receiving the possible best terms and best advice for your project.
Unfortunately the Tarion Freehold bond wording is still not widely accepted by surety companies across Canada. However, we are actively working with Tarion to deliver an improved bond wording and are hoping for a resolution this year. Despite this challenge, in certain cases we have been successful in securing freehold bonds under the current bond wording for developers. Please contact us to learn more.
As a long-standing surety brokerage we have excellent working relationships with all of the surety companies currently writing developer surety business in Canada. Our key partners include:
- The Guarantee Company of Canada (GCNA)
- Trisura Guarantee
- Sovereign Insurance
- Berkley Canada
We know these companies well and understand their underwriting philosophies and principles. This is very important as no two sureties are alike. By understanding the appetites of each company, we are able to place our developer clients with the right surety partner. This ensures not only excellent terms but also a long-standing relationship that supports the growth and flexibility that our developers demand.
Our organization has been working with FCA Surety Bonds and Insurance for over 2 years. The team, led by Jamie Collum and Warren Griffiths, exceeds expectation in service, responsiveness and knowledge.
Jamie and Mike from FCA did a great job in assisting me throughout the process. Not only from the bonding requirement with Tarion but also other aspects relating to obtaining project approvals and project insurance. Would definitely highly recommend them.
FCA is one of the best companies we have had the pleasure of working with so far. Very professional, fast and always on time. Looking forward to continue working with them.