Real Estate Broker Bond

What is a Real Estate Broker Bond

Real Estate Broker Bond is a surety bond required for real estate brokers to obtain their license. It is a prerequisite for acquiring a real estate broker license

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Who Needs a Real Estate Broker Bond

In the following states, real estate broker bonds are required before acquiring a license

Arizona
Massachusetts
Oregon
New Hampshire

Why do I need a Real Estate Broker Bond?

Because a real estate broker bond provides a financial guarantee to the general public, especially the customers of the broker, that a real estate broker will execute their responsibilities in accordance with regulations of their industry. It also guarantees the money and property turned over to an agent in real estate transaction are truthfully accounted for.

How does a Real Estate Broker Bond work?

Each real estate broker bond is a legal contract binding three parties together.

The principal is the real estate broker
The obligee is the government agency that requires the bond, usually the state's Department of Consumer and Business Services or Real Estate Commission
The surety is the insurance company who issues the bond

If a real estate broker conducts fraudulent activities (i.e., failure to perform contractual services, misrepresentation, mishandles funds / property entrusted to him), a claim can be filed against the real estate broker. If a claim is prove to be valid, the surety will pay for the claim up to the bond amount. Then, the surety will require reimbursement from the real estate broker.

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How to get a real estate bond?

You can get started now by filling out a 3-minute form and you can receive your bond within a day. Alternatively, you can at (512) 856-7739 and get started with your bonding process.

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