For title agencies, this surety bond is required before the company is able to get licensed to search real estate records to determine the legal ownership of properties and find any outstanding financial implications that need to be settled before the property can be sold.

1. TITLE
AGENCY
BOND
Presented by:

2. What is a Title Agency Bond?
Many states are requiring bond agencies to obtain title agency bonds before they are
licensed to perform real estate records searches and other title work.
This Surety Bond gives assurance to the state that your company will comply with all state
regulations for title agencies including preparing and issuing title documents as required by
law.

3. 3 Parties Involved:
A title agency bond is much like any other surety bond,
having 3 parties involved.
PRINCIPAL
The company or person required to
obtain the title agency bond.
OBLIGEE
The state agency that requires the company to
purchase the bond before issuing a license to
the company.

4. 3 Parties Involved:
A title agency bond is much like any other surety bond,
having 3 parties involved.
SURETY
The company that serves as the financial
guarantor of the title agency bond.

5. How does it work?
If the state finds that you have not met all of the terms and
requirements set in the bond, they will file a claim with the
surety agency.
The surety agency will investigate the claim.
A valid claim will mean that the surety agency makes a
payment to the complainant that will not exceed the bond
amount.
The title agency will have to repay the surety agency for any
payments made out of the bond.

6. What does a title agency bond cost?
There is no set cost for a title agency bond. Your premium is a small percentage of the total bond amount.
Premiums are based on several factors including your qualifications as well as the bond amount coverage required by
your state.
“
Qualified applicants can pay as little as 1%.

7. https://suretybondauthority.com/title-agency-bond/
SOURCE:
800-333-7800
www.suretybondauthority.com