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NinhP (California)
Posts: 12
Posted:
Hi we are new brand new community and holding is some kind of bond and the builder wants the board to release the bond. There are some issues and the board sent email to the management firm stated that the board is not going to release the bond because there still issues, the management replied to the board:

“The assessment bond pertains to the payment of assessments only. Brandywine has met its obligation, including the $686 (I will verify the amount) from lots 31, 32 and 33. To hold up release of the bond for the other items would not be advisable as there is other recourse, although perhaps not as favorable, for association’s to remedy developer construction issues. This is not a construction or completion bond, it’s an assessment bond.”

Is there someone has knowledge about the types of bond the builder normally posting and the conditions/issues that the board can hold not to release the bond? Please advise.

Ninh
SusanW1 (Michigan)
Posts: 5,202
Posted:
Sounds like you being given the "best case senario": waive the assessments and there is more likelihood that the builder will complete/correct some other issues.

Your board will have to decide which is the sweeter deal. That $600 amount does not seem like much in order to be rid of him.

But he needs to guarantee the other issues get resolved.

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