Real Estate Broker Bond Overview
Real estate broker bonds are required in a number of states countrywide from those who wish to become licensed as real estate brokers. Among these states are: Massachusetts, Oregon, New Hampshire and West Virginia. To get their license, individuals have to submit a real estate broker surety bond upon applying to their local Real Estate Commission or Department of Consumer and Business Services.
Real estate brokers handle people’s funds and properties during real estate deals, which requires some form of guarantee that they will do so in an honest way. This is where the real estate broker bond comes in. These bonds provide guarantee to individuals that a real estate broker is licensed and that they comply with state statutes.
If a broker does not comply with a state’s regulations, the bond allows obligees to file a claim against it and receive compensation for losses suffered. Bonds are agreements made between the principal (the real estate broker), the obligee (the Real Estate Commission) and the surety bond company that issues the bond.
For any compensations paid to obligees, brokers need to reimburse the surety for its backing. Therefore avoiding a claim on one’s real estate broker bond is the best approach.
Take a look at the sections below for more information about these bonds and how to get yours.
Real Estate Broker Bond Cost
To obtain your bond you need to pay a premium. This premium is a percentage of the total amount of the surety bond. Bond amounts are different in the different states that require them. Here are the bond amounts for some of the states that require real estate broker bonds:
- Massachusetts: $5,000
- Oregon: between $15,000 and $40,000
- New Hampshire: $25,000
- West Virginia: $2,000
If you are based in another state, make sure to check with your local authorities to find out whether you need a real estate broker bond.
If you are applying for a bond in one of the above states, the cost of your bond will vary according to the bond amount. The cost also depends on your personal credit score, which is taken by sureties as an indicator of your financial stability. Sureties typically also take into account:
- Your personal and business financial statements
- Your personal asset profile and liquidity
- Your work history and record
Typically, if you have a high credit score, a surety will offer you a premium between 1%-4% of your bond’s total amount.
And if you apply for your bond with Bryant Surety Bonds, you can expect to get one of the best possible rates on your bond. Thanks to our numerous surety partners throughout the country, all of whom are A-rated and T-listed, we can offer our customers some of the lowest rates possible.
To apply for your bond, or to get a free quote, simply submit a surety bond application form, which takes only a few minutes to fill out. You can call our experts anytime at 866.450.3412, to inquire further about real estate broker bonds.
Bad Credit Bonds
Thanks to Bryant Surety Bonds’ Bad Credit Program, applicants with a low credit score can still get bonded– though at slightly higher rates. Generally, bad credit applicants pay a premium between 5% and 10% of the total bond amount. Your exact rate will be determined once you apply for your bond. By working with us you are guaranteed to get your bond from the same top-tier sureties that serve all our other clients.
Real Estate Broker License: Application and Renewal
Each state has a different set of requirements for real estate brokers to get licensed, but certain steps are generally required in every state. Among them are:
- Complete a real estate broker course or education
- Pass a real estate broker exam
- Submit a complete application form and pay all application and/or licensing fees
- Provide recommendations
- Obtain a professional ID number
- Provide criminal background check and copy of fingerprints
How to Get Your Real Estate Broker Bond
To get your bond, apply online here by filling out your application. After you submit your application we will contact you with your free quote. After that, we will send the bond to you via mail and, if needed, can also provide you with free electronic copies.
Call our professionals anytime at 866.450.3412 to receive more information or assistance with your application. We will be happy to help!