What is a title agency bond?
A title agency bond is a surety bond that title insurance agents (or agencies) must obtain as part of the state licensing process, according to each state’s Department of Insurance. A title agency bond ensures that agents and agencies follow their state laws and regulations regarding the industry.
This bond may go by various names, including title agent bond, title service bond, title insurance bond, escrow agent bond, title attorney bond, and title insurance producer bond. Title agent bonds guarantee that title agencies will carry out their work honestly, ethically, and accurately. Activities may include:
- Performing title searches
- Handling and issuing legal documents
- Providing title insurance
- Other tasks clients request
If your agency breaks its bond contract by acting dishonestly, misrepresenting a client, or acting in any way that costs the state or a consumer money or harm, it could face costly bond claims.
Get Your Title Agency Bond:
- A title agency bond is a surety bond that title insurance agents (or agencies) must obtain as part of the state licensing process.
- This bond may go by various names, including title agent bond, title service bond, title insurance bond, escrow agent bond, title attorney bond, and title insurance producer bond.
- If your agency breaks the bond contract by acting dishonestly, misrepresenting a client, or acting in a way that costs the state or a consumer money or harm, it could face costly bond claims.
- You must obtain a separate bond for each state in which you work.
Who needs a title agency bond?
If you work in any of the following states, you may need to obtain a title agent bond before receiving your state title agency license. You must obtain a separate bond for each state in which you work. The bonding requirement may apply to title agents, title agencies, and title attorneys – depending on the state.
- Ohio: $150,000 bond
- Maryland: $50,000 bond
- Texas: $10,000 – $100,000 bond
- Florida: $35,000 bond
- Virginia: $200,000 bond
- Louisiana: $100,000 bond
- Pennsylvania: $30,000 or $10,000 bond
- Tennessee: $25,000 bond
- Maryland: $150,000 bond
- Missouri: $20,000 bond
You may also have a title agency bonding requirement if you work in Arizona, California, the District of Columbia, Idaho, Kansas, Nevada, New Mexico, or Washington.
How much is a title agency surety bond?
To obtain your bond, you’ll pay a premium, which is a small percentage of the total bond amount required in your state. Typically, premium rates fall between 1-5%. The better your credit score and business financials, the lower your bond rate.
For example, if you live in Florida and need a $35,000 bond and score a 1% premium rate, you’d pay $350. In Texas, you could pay as little as $100 for a $10,000 bond.
Frequently Asked Questions
You can often still get bonded if you have a low credit score. However, you may be required to pay a higher premium due to the increased bonding risk.
To successfully apply for your state license, you’ll typically need to complete or submit the following items to your State Department of Insurance:
- Completed title agency license application
- Title agency bond
- Insurance exam
- Copy of your fingerprints
- Information regarding your business entity and affiliations
- Employment history check
- Background check
- Basic information (like name, address, and social security number)
- Payment for associated fees
For your license and bond to remain up to date, you must renew them regularly. The renewal process may include updating the forms and procedures listed above.
Get a Title Agency Bond in Your State
ZipBonds offers the fastest and most secure option for acquiring license and permit bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us today at 888-435-4191 to speak with one or our agents!
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.