California Homeowners Association (HOA) Assessment Security Agreement Bond
Get approved for this bond ASAP! APPLY NOW!
What is a California Homeowners Association Assessment Security Agreement Bond?
The Real Estate Commissioner of the State of California requires every applicant for a final subdivision public report to obtain this bond.
The purpose of this bond is to:
- Assure the availability of funds or sources of funds to cover the costs of common facilities and services during the early stages of ownership and operation by the Homeowners Association (HOA)
- Assure the fulfillment of the subdivider's obligation to pay assessments as an owner of subdivision interest
This requirement is mandated by Section 2792.9 of the California Code of Regulations.
How much does a California Homeowners Association Assessment Security Agreement Bond cost?
The bond cost will vary per applicant. This will be based on the applicant’s credit score. The typical bond cost for those who have excellent credit scores will start at 1.5% of the bond amount.
The bond amount will be determined by the Real Estate Commissioner of the State of California. The bond amount will be equal to six months’ regular assessments for the separate interests covered by the final subdivision public report.
Have you determined your bond amount? If so, check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a California Homeowners Association Assessment Security Agreement Bond?
Here’s a step-by-step guide on how to get this surety bond:
APPLY FOR THIS BOND HERE! Once we have received your application, we will inform you about the important information or documents that you must submit in order to move forward to the next step of the bonding process, which is underwriting.
During the underwriting process, our expert underwriter will assess the following:
- Your financial capability
- Your business or job performance history
- Your credit score
It is important to provide us with a clear and organized information to prevent any delays. Our expert underwriter will check everything that you have submitted. Once you have signed the indemnity agreement, the bond will be issued and immediately sent to you!
How does a California Homeowners Association Assessment Security Agreement Bond work?
A surety bond is a three-party agreement.
Principal – applicant for a final subdivision public report
Obligee – the State of California
Surety – the Surety bond provider
This bond is for the protection of the Obligee in case the Principal violates any of his or her bonded obligations. If the Principal fails to do any of the bonded obligations required by the relevant laws, rules, and regulations, the Obligee can file a bond claim.
The Surety will check first if the claim is valid by performing an investigation. If the claim is valid, the Surety will pay the Obligee on behalf of the Principal. The Principal must pay the Surety back once the payment has been made.
Ready to start on your HOA Assessment Security Agreement bond? APPLY HERE!