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Title Agent Bonds
In a number of states (28 to be exact), title agents, abstractors and title insurers are required by law to acquire a surety bond as part of their licensing requirement.
Jet Insurance Company is a direct surety provider across all 50 states. If you are in need of a Title Agent Bond in your home state or even across multiple states, Jet can supply you with all of your surety bond needs efficiently and affordably.
Due to the differences in state regulations, you may notice that title agent/agency bonds go by various names (e.g. Escrow Company Bond, Abstractor Due to the variations in the different states, the naming of these bonds varies from Title Agent Bond to Title Insurance Bond, but overall these bonds are required to protect the parties relying on the agent from financial loss caused by improper handling of funds or duties by the agent. How Much Does a Title Agent Bond Cost with Jet?
At Jet, the cost of the surety bond is a small percentage of the bond limit set by the state.
How Much Does a Title Agent Bond Cost with Jet?
At Jet, the cost of a Title Agent Bond is a small percentage of the state-required bond limit. The chart below shows the most common limits for title agent bonds and their corresponding 1-Year and monthly price.
| Bond Limit | 1-Year Price | Monthly Price |
|---|---|---|
| $25,000 | $100 | $10 |
| $35,000 | $131 | $13 |
| $50,000 | $188 | $19 |
| $100,000 | $375 | $38 |
| $150,000 | $563 | $56 |
Here's an example of the multi-year pricing for the $35,000 Florida Title Agent Bond:
| Bond Term | Cost |
|---|---|
| Monthly | $13 |
| 1-Year | $131 |
| 2-Year | $230 |
| 3-Year | $328 |
At the bottom of this page is a list of the variations of title agent bonds.
With Jet, you can choose from monthly, annual, and multi-year premium plans. Paying for a 2 or 3 year term bond will save you the most money in the long term. Jet's monthly payment option provides the most flexibility allowing our customers to cancel at any time.
What Is the Purpose of a Title Agent Bond?
Title agents act as a designated neutral third party in a real estate transactions, which can create an opportunity for potential financial damage to the client. The bond provides a financial guarantee to the governing state regulator and the general public that the licensee will perform their job in an honest and efficient manner. This includes upholding the regulations of their license, as well as their contractual obligations to any client in question. Claims on these bonds are rare because of the relatively strict licensing process to become a title agent, but its still important to understand how they happen in order to avoid them. Below is a list of activities that could potentially lead to a claim on the agent's bond:
- Willful misapplication of funds
- Commingling of funds
- Creating false statements
- Theft or embezzlement
- Failure to distribute funds properly
- Issuing a title without proper authority
This is not an exhaustive list and specific regulations can vary by state. Typically, most statutes note that the prohibited activities must be done willingly and knowingly, which makes claims easy to avoid. Small clerical errors would not result in a claim, this would be covered by Errors & Omissions Insurance.
Should the licensee mislead or misrepresent a client, knowingly behave dishonestly, or otherwise violate laws applicable to their state license, funds from the surety bond may act as a means of restitution to the damaged party (e.g. a client of the licensee or the state regulator themselves).
The purpose of the Title Agent Bond is to financially protect clients from being taken advantage of and to ensure that licensees will be held accountable for their actions.
How to Apply for a Title Agent Bond With Jet
You can get your surety bond in just a few minutes with Jet. Straight from the source!
To get started, select the “Quote” button above, or you're more than welcome to give us a call at (855) 296-2663 and one of our Jet team members can walk you through the application process.
Once you have selected your desired surety bond, some general information is required such as your contact details and information about the business. Also, double-check that you are inputting the correct info as your surety bond must contain the same exact details as your license to be appropriately filed with your state regulator.
After you receive your approved rate options, all that is left to do is choose the best payment option for you (i.e. monthly, annual, or multi-year) and complete your bond purchase. You'll then receive a copy of your receipt and bond form as soon as this last step has been fulfilled.
In addition, Jet can take care of filing your bond for you at no extra cost! However, state regulators will occasionally require you to mail in the original signed bond form along with your license application, especially if this is an initial license application. If this is the case, our team can mail the bond straight to you, and if it's an emergency, Jet offers next-day shipping for a small fee.
How Claims Are Handled
When a claim is filed, there is a clear protocol that Jet follows:
- Claimant files with Jet
- Jet gathers proof from claimant
- Principal (the title agent) gives their side of the story
- Jet investigates the facts of the situation
- Claim is either accepted, denied, or arbitrated
- If Jet pays out the claim, indemnification is required from the principal.
Additional Title Agent Bond Information
How to Renew My Bond
For annually-purchased bonds, see Jet’s process to renew your bond. Hint- it’s simple.
How to Cancel My Bond
You can cancel your bond at any time with Jet. Details here.
Bond Claim Process
Check out what causes a Title Agent Bond claim and what can happen after a claim is made.
Surety bond regulations vary by state, so some understanding of the licensing requirements within your operating state (or states) is important. In the chart below, you will find the various surety bonds required of title agents/agencies, escrow agents/agencies, abstractors, and title insurers in each state, as well as links to contact details for every state regulator in charge of such laws.