Commercial Surety Bonds
Lease Bond
Security for rental and related obligations under a lease agreement.
Overview
A lease bond guarantees the tenant's payment of rent and performance of obligations under a lease, in place of a large cash security deposit.
It is used in commercial, industrial, and retail leases where the lessor requires assurance of payment.
Purpose
- Replaces or reduces a cash security deposit.
- Assures the lessor of rental payment.
- Preserves tenant working capital for operations.
Typical uses
- Office, retail, and warehouse leases
- Industrial and ecozone facility leases
- Equipment leasing arrangements
Who normally requires it
- Corporate tenants of commercial space
- Locators leasing industrial facilities
- Lessees of equipment or vehicles
Parties involved
- Principal — the business or individual required to post the bond
- Obligee — the government agency, regulator, or private party protected
- Surety — the authorized Philippine insurance company that issues the bond
Typical documentary requirements
- Accomplished bond application form with obligee and transaction details
- SEC or DTI registration, Articles of Incorporation, or business permit
- BIR Certificate of Registration and latest filed tax return
- Audited financial statements for the last two to three years
- Valid government IDs of signatories and board or partnership authority
- Signed or draft lease contract
- Schedule of rent and deposit requirements
Final requirements depend on the obligee and the issuing insurance company. See the full requirements guide.
Typical application process
Step 1
Submit the application
Open an application in your SuretyPH portal and enter the obligee, transaction, and bond details.
Step 2
Upload requirements
Follow the guided checklist and upload each document securely to your application file.
Step 3
Pre-assessment
We review the file for completeness and endorse it to an authorized issuing insurance company.
Step 4
Quotation
The insurer evaluates the submission and issues a quotation covering premium, fees, and any collateral requirement.
Step 5
Payment and issuance
Once the quotation is accepted and the premium is settled, the insurer issues the bond for release or delivery.
Risks typically covered
- Unpaid rent and utilities
- Damage to the leased premises beyond wear and tear
- Breach of lease covenants
Frequently asked questions
Do lessors commonly accept this?
Acceptance depends on the lessor's policy and the lease terms.
What amount is bonded?
Typically the equivalent of the required deposit or a number of months of rent.
More answers on premiums, collateral, and timelines are in the general FAQs.
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SuretyPH is a digital platform for surety bond information, inquiries, requirements and request tracking. It does not underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, approval, pricing and issuance are undertaken by the applicable licensed insurance company.