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These surety bonds are general for all states.
Learn more about title agent bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
In some states, title agent bonds are referred to as title agency bonds, title insurance settlement agent bonds, title insurance agent bonds, title attorney bonds, or escrow agent bonds. Regardless of what it’s called, it is a form of license and permit bond required by many states in order for title agents and agencies to obtain a license and operate in the state.
By purchasing this bond, the agency guarantees that it will conduct business in a lawful and ethical manner, in compliance with all applicable state regulations. This bond provides protection against any deliberate malfeasance or negligence on the part of the agent or agency in performing such duties as conducting title searches, issuing title insurance, and handling related legal documents.
In most states, the requirement to obtain the bond applies to title agencies and title agents. In some states it also applies to title attorneys and title insurance agents. Agencies operating in multiple states that require title agent bonds must obtain a separate bond in each state because of the differences in state regulations.
The bond provides protection for both the state entity that licenses title agents and agencies—and for consumers. The bond is an agreement between the state licensing department (the obligee acting on behalf of the public), the title agent or agency (the principal), and the company underwriting and issuing the bond (the surety).
Failure to abide by state regulations that cause financial harm to an obligee can result in a claim being filed against the principal’s surety bond. The surety will investigate the claim and make payment up to the full penal amount of the bond if the claim proves to be valid. The principal must subsequently reimburse the surety for that amount.
Each state establishes the bond amount required in that state, which ranges from as little as $7,500 (in Texas) to as much as $200,000 (in Virginia). The applicant pays only a small percentage of the full bond amount, however. The surety assigns a premium rate to each applicant based on analysis of the applicant’s personal credit score, assets, and other financial circumstances.
Applicants with good credit will typically pay an annual premium that’s between 1% and 3% of the bond amount. Applicants with bad credit may be able to get bonded but will pay as much as 15% of the bond amount.
Do you need a title agent bond? Use our convenient online system to apply today.
