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Surety

Surety is an age-old form of legal contract and has a well-documented history in commercial and personal transactions around the world. A surety bond is a three-party agreement by which the surety binds itself to discharge the contracted obligations of a principal to an obligee in the event that the principal fails to fulfill such obligations.

WHY USE DEVELOPER SURETY BONDS AND DEPOSIT INSURANCE?

A bond is an alternative to a letter of credit to satisfy the security requirements of provincial legislation. The price of the bond is highly competitive with the price of a letter of credit.

Deposit Insurance enables the condominium builder to access the purchasers' deposits to be used as a low-cost source of financing for the construction of the project or pay down construction financing, reducing interest costs.