Surety Bond Encyclopedia

Used Building Materials Dealer ($1,000) Bond - City of Detroit, MI in Michigan

Brief Summary

Detroit licenses a used building materials yard as a secondhand business, and the license will not issue until the City Law Department has reviewed and accepted your $1,000 bond. Get the bond first, get the business name and dates right the first time, and the license can move on schedule instead of bouncing back for a correction.

A dealer who buys and resells used building materials in Detroit needs a City of Detroit secondhand license, listed by the city as Secondhand Building Supplies, and a $1,000 surety bond naming the City of Detroit as obligee. The license fee is $123 and the license runs two years, expiring on October 31. The bond is uploaded for review by the City Law Department before the license is issued.

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How to Apply for a Used Building Materials Dealer ($1,000) Bond:

  • Legal business name exactly as registered, including LLC or Inc.
  • Business address of the Detroit location being licensed.
  • Owner or principal name, home address and Social Security number for the credit review.
  • Complete the bond application and review the quoted premium.
  • Receive the signed $1,000 Uniform Surety Bond and the surety's Power of Attorney.
  • Upload the bond and Power of Attorney to the City of Detroit online bond application at least one to two weeks before the license is needed.
  • Pay the $123 Secondhand Building Supplies license fee.

Detailed Information About the Michigan Used Building Materials Dealer ($1,000) Bond:

Which Detroit license this bond belongs to

Detroit groups used goods businesses under its Second Hand Sales licenses. The city's secondhand license page lists a Secondhand Building Supplies fee of $123, next to the general secondhand store, jewelry, and appliance and battery categories. That building supplies category is where a dealer in reclaimed lumber, doors, fixtures and other used building materials is licensed. The license expires every two years on October 31.

What the bond guarantees

The $1,000 bond is a promise to the City of Detroit that the dealer will follow the city ordinance that governs secondhand dealers while it buys and resells used building materials. If the dealer violates the ordinance and causes a loss, a claim can be made against the bond. The surety pays a valid claim up to $1,000 and the dealer repays the surety.

How Detroit reviews the bond

Detroit uses a single Uniform Surety Bond format across its business licenses, and the City Law Department reviews each one before the license issues. The Law Department's own guide lists what it checks: the business legal name, the surety company's name and address, the bond amount, the occupation and the ordinance number as shown on the chart on the back of the application, a start date and an ending date filled in by the surety, and a Power of Attorney for the attorney in fact who signs. The most common reasons a bond is sent back are incomplete bonds, incorrect code references, a missing or different attorney in fact, and a missing bond or Power of Attorney.

The Law Department asks for documents at least one to two weeks before the license is needed and aims to finish its review within 48 hours. Submission is online through the city's bond application link.

Before the bond is issued

Confirm the occupation title and ordinance reference to print on the bond with the City of Detroit business license office at (313) 224-3179, so the surety fills in the exact wording the Law Department expects.

Eligibility and Requirements for a Michigan Used Building Materials Dealer ($1,000) Bond:

  • Bond amount of $1,000 with the City of Detroit as obligee.
  • Occupation and ordinance number on the bond matching the chart on the city's bond application.
  • Start and ending dates completed by the surety.
  • Power of Attorney for the attorney in fact who signs the bond.
  • Owner credit review. Credit history sets the premium rate rather than eligibility for most applicants at this bond size.

Michigan Used Building Materials Dealer ($1,000) Bond FAQs:

Which Detroit license do I apply for?

Detroit lists used building materials under its Second Hand Sales licenses as Secondhand Building Supplies. The license fee is $123 and it expires every two years on October 31.

Who reviews the bond?

The City of Detroit Law Department. Its guide asks for bonds to be submitted online one to two weeks before you need the license and says it tries to finish review within 48 hours.

Why do Detroit bonds get rejected?

The Law Department's list of common errors includes incomplete bonds, incorrect code references, a missing or different attorney in fact, a missing bond or Power of Attorney, and duplicate submissions. Checking the business legal name and the ordinance reference before the bond is signed avoids most of these.

How is the premium set?

The surety prices the bond from the owner's personal credit, time in business and the $1,000 bond amount. The premium is paid for the bond term and is not a deposit, so it is not refunded when the bond ends.

Is the bond the only thing the city checks?

No. Detroit's Second Hand Sales page also lists a building permit, identification of the applicant, proof of ownership and articles of incorporation among the items it reviews.

Official and Additional Resources for the Michigan Used Building Materials Dealer ($1,000) Bond:

Other City of Detroit, MI Surety Bonds in Michigan

Amusements/Public Entertainments ($10,000)Auctioneer ($1,000)Builder of Artificial Stone Sidewalks ($2,500)Dealer in Used Auto Parts Only ($1,000)Dealer in Used Auto Parts and Wrecking ($3,000)Dry Cleaning and Laundering Plants ($1,000)Erector of Awnings and Canopies ($5,000)Erector of Signs ($5,000)Erector or Owner of Canopies ($5,000)Hauler of Extraordinary Loads - CLASS A ($1,500)Hauler of Extraordinary Loads - CLASS B ($1,500)Itinerant Vendor ($1,000)Junk Collector ($2,000)Junk Dealer ($2,000)Mover of Houses or Other Residential Structures ($20,000)

See all 21 City of Detroit, MI surety bonds

All City of Detroit, MI bonds · All Michigan surety bonds