Know Surety

DRE Bond: Department of real estate bond, but also known as a HOA bond or homeowner's association bond, it guarantees for the benefit of the homeowner's association that all maintenance upkeep will be satisfied until 80% of the units are sold. Typically when a developer undertakes a project to develop a new condominium or community where subsequent monthly association dues will be assessed, the DRE bond will cover the shortfall from the existing owners payment of the association fees until 80% of the units in the development are sold, which at that point the homeowner's payment will cover the association dues in its entirety.