- December 5, 2016
- Posted by: Surety Bond Experts
- Category: Surety Bonds
There are several industries which require a surety bond. So far, we have discussed construction, financial, court bonds and several others. But, did you know that real estate brokers are also required to purchase bonds in some cases? In a nutshell, a real estate broker bond helps to guarantee that any assets, property or funds which a bonded real estate agent may handle, is done so ethically and responsibly. If the bonded real estate broker fails to do this, a client may file a claim against them.
As with other surety bonds, a real estate broker bond consists of three parties. They are the principal (the real estate broker), the obligee (the State requiring the bond) and the surety (the surety company issuing the bond). If a client feels that they have been a victim of fraud, then they may file a claim with the State. The surety would then evaluate the case. If the real estate broker is found to be in default of the surety bond, the surety bond producer compensates the client. The surety bond producer then seeks retribution from the real estate broker.
The prices for a real estate broker surety bond are one of the less risky bonds in the industry. Therefore, minimum information is required. Although the bond penalty may vary by State, it is typically a flat amount and ranges from $5,000 to $20,000. The premium, therefore, is generally low and may be as little as $50 for five years.
At GotSuretyBonds.com, we have the expertise to help you with your real estate broker bond. As it is one of the less risky bonds to issue, a 5 minute phone call may suffice to gather all necessary information. To get started on your real estate broker bond, feel free to email us at Matt@SuretyBondProfessionals.com or call us at 781-559-0568.