A "Tool" for the Real Estate Lawyer

So many of the 100 or so real estate transactions I'm involved with each year are admittedly hum-drum. Fairly routine and no particularly unique issues. So it's exciting when you learn something new in a transaction.

A transaction currently in our office involves a new condo purchase. The building was built a couple years ago but the developer did not complete a separate garage (didn't even start the garage). But the buyer wants to close fairly quickly here but the garage won't be completed until May 1.

What to do?

Normally when there's smallish stuff not done or some minor damage to a unit the thing to do is some repair escrow holding back enough money to fix the repair. That was my first thought here. However, we'd be talking about a substantial holdback likely $30k which the Seller balked at. Instead the Seller will purchase a "performance bond." I knew nothing about these until a couple of days ago. It's akin to an insurance policy where my client is named the obligee on the bond and if the developer fails in its performance of garage construction then the bond company will arrange performance with another developer.