Surety Bond Encyclopedia

Demolition Permit ($1,000) Bond - City of Mountain Brook, AL in Alabama

Brief Summary

Mountain Brook will not issue a demolition permit until it has $1,000 in hand as a cash deposit or a surety bond. The bond keeps that cash in your account, and once it is accepted the building inspector can release the permit.

Section 109-327 of the Mountain Brook code makes a $1,000 cash deposit or surety bond, naming the city as obligee, a condition of any permit to move or demolish a building. It covers damage to city property, city costs from the work, and compliance with the permit terms, including debris cleanup.

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How to Apply for a Demolition Permit ($1,000) Bond:

  • Submit the written demolition permit application to the Mountain Brook building inspector.
  • Provide either a $1,000 cash deposit or a $1,000 surety bond naming the City of Mountain Brook as obligee.
  • Confirm with the building department which bond form it accepts before the surety signs.
  • Show proof of public liability insurance of at least $100,000 per occurrence.
  • Pay the $2,000 demolition fee.
  • Have utilities disconnected and the sewer plugged and inspected before work starts.

Detailed Information About the Alabama Demolition Permit ($1,000) Bond:

When the bond is required

Section 109-325 makes it unlawful to demolish, wreck or tear down a house or any other building or structure in Mountain Brook without a permit from the city building inspector. Section 109-327 then sets the condition for that permit: the applicant makes a $1,000 cash deposit or provides an acceptable surety bond naming the City of Mountain Brook as obligee. The same rule applies to permits for moving a building.

What the bond covers

The $1,000 indemnifies the city for any damage to city property and reimburses it for costs it incurs because of the demolition. It is also conditioned on strict compliance with the permit terms, including the cleanup of debris. For a move, it also covers the approved route and time.

The rest of the permit file

The bond is a small part of the cost. The Chapter 14 fee schedule sets the demolition fee for buildings or structures at $2,000. Under Section 109-328 no work may proceed unless public liability insurance of at least $100,000 per occurrence is in force, covering the applicant and its employees for bodily injury and property damage. Section 109-326 asks for the type of building, its dimensions and location, proof of that liability coverage, and anything else the inspector needs. Section 109-300 says work cannot start until the utilities are disconnected and the building sewer is plugged, inspected and approved.

Before you buy

The ordinance calls for an acceptable surety bond, so ask the building department for any bond form it uses and confirm the filing steps before the surety issues the bond. Premium is set by the surety after a short review of the applicant, and on a bond this size it is a small fraction of the $1,000.

Eligibility and Requirements for a Alabama Demolition Permit ($1,000) Bond:

  • Bond or cash deposit of exactly $1,000.
  • City of Mountain Brook named as obligee.
  • Coverage for damage to city property and city costs from the demolition.
  • Compliance with permit terms, including debris cleanup.
  • Liability insurance of at least $100,000 per occurrence kept in force during the work.

Alabama Demolition Permit ($1,000) Bond FAQs:

Can I pay cash instead of buying a bond?

Yes. Section 109-327 allows a $1,000 cash deposit or an acceptable surety bond. The bond lets you keep the cash free while the permit is open.

Is the $1,000 the demolition permit fee?

No. The $1,000 is security. The demolition fee itself is $2,000 under the Chapter 14 fee schedule, and it is paid separately.

What can the city claim against the bond?

Damage to city property, costs the city incurs because of the demolition, and failure to follow the permit terms, including cleaning up debris.

Does my liability policy replace the bond?

No. Section 109-328 requires at least $100,000 of public liability insurance in addition to the $1,000 cash deposit or bond.

Official and Additional Resources for the Alabama Demolition Permit ($1,000) Bond:

Other City of Mountain Brook, AL Surety Bonds in Alabama

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