Subdivision
Subdivision Tax Bond
A subdivision tax bond is a bond a developer files so a county will record a subdivision map before property taxes or special assessments on the land are due.
- Required by
- County boards of supervisors and tax collectors (in California, under the Subdivision Map Act)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond is filed with the county and promises that the property taxes and current special assessment installments on the subdivided land will be paid when due. If they go unpaid, the county applies the bond proceeds to the taxes, penalties, and costs. Any balance goes back to the surety.
Who needs it
- Subdivision developers
- Landowners recording a final or parcel map
- Homebuilders splitting land into lots
What the underwriter looks at
- Estimated taxes and assessments due
- Developer's financial strength
- Credit
- Project size
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Why do I need this bond to record a map?
In California, Government Code 66493 bars recording a map while the land carries a lien for taxes not yet payable, unless you file an estimate of those taxes and security for their payment. The bond is that security.
How is the amount set?
It is based on the county official's estimate of the taxes and assessments that will come due. Counties can also accept cash.
When is the bond released?
Once the secured taxes and assessments are paid, the county releases the security.