Real Estate Bonds

Learn more about Real Estate Bonds

Popular Real Estate Bonds

What is a real estate broker bond?

Real estate broker bonds are legally binding agreements between three parties: real estate professionals (such as real estate agents, brokers, appraisers, or salespersons), the local government agency responsible for regulating real estate sales, and a surety company.

The government agency is the obligee and establishes the obligations that the real estate broker (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the real estate professional.

Why do you need a real estate broker bond?

Real estate broker bonds are required in most states as part of the licensing process to operate as a real estate broker. When the surety company issues the bond, they provide the government agency a guarantee that the buyers and sellers in a real estate transaction involving the licensed broker will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the real estate broker license.

If the real estate broker fails to meet the obligations set out by the government agency, the surety will pay out damages up to the bond amount. The broker is ultimately liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.

How much does a real estate broker bond cost?

Real estate broker surety bond costs vary depending on the total bond amount and the premium rate. The government agency sets the required bond amount and the surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.

Premium rates for real estate broker bonds typically range between 0.5% and 1% of the total bond amount. Real estate broker bonds do not require a credit check ––meaning that bad credit will not result in higher bond premiums.

Below are the lowest premiums EZ Surety has issued for real estate broker bonds in popular states.

  • EZ Surety has issued real estate broker bonds in the State of Massachusetts for premiums as low as $75
  • EZ Surety has issued real estate broker bonds in the State of California for premiums as low as $100


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