real estate

Surety bond

An arrangement made by an insurance or bonding business in which they agree to be accountable for certain potential defaults, debts, or obligations committed for by an insured party; in essence, a policy that insures one's personal and/or financial integrity. A surety bond is often used in the real estate industry to assure that a certain project will be finished by a specified date or that a contract will be fulfilled in accordance with the terms outlined in the agreement.