Real Estate School Bond Guide
Real estate education providers need a surety bond for licensing in several states. Learn how to navigate the bonding process with this guide.
Bond Overview
- Purpose: To guarantee compliance with local licensing laws and protect tuition payers
- Who Needs It: Real estate schools in Texas, Louisiana, Alabama, Hawaii and Pennsylvania
- Bond Amounts: $5,000–$20,000, varies by state
- Premium Rates: Typically 0.75–5% of the bond amount
What Are Real Estate School Bonds?
Real estate school bonds ensure that schools comply with the legal and ethical standards set by state regulatory bodies. They ensure that all students enrolled in a real estate school receive their education as promised.
If a school closes for any reason, it must reimburse students for unused, prepaid tuition funds and fees. The surety bond ensures that those funds are available.
Who Needs a Real Estate School Bond?
Real estate school surety bonds are required in various states including Alabama, Hawaii, Louisiana, Texas, and Pennsylvania. Select your state below for more information on bond requirements in your area:
How Much Do Real Estate School Bonds Cost?
The cost of a real estate school bond depends on the bond amount and the applicant's credit rating. For example, the $10,000 Louisiana real estate school bond starts at $100 while schools in Texas need a $20,000 bond starting at $200.
Typically, annual premiums range from 0.75% to 10% of the total bond amount. Applicants with strong credit and solid financial statements may qualify for lower rates. Apply now for an exact quote!
How Do Real Estate School Bonds Work?
A real estate school bond binds three parties in a legal agreement:
- Principal: The real estate school purchasing the bond.
- Obligee: The government entity requiring the bond.
- Surety: The company issuing the bond and financially backing the principal’s obligations.
If the principal defaults, fails to meet regulatory standards, or engages in fraudulent activities, the surety company will compensate affected parties for valid claims up to the bond amount. However, the principal is responsible for reimbursing the surety for any payouts made.
How to Get a Real Estate School Bond
SuretyBonds.com offers a quick and simple process for obtaining a real estate school bond. Just follow these three steps:
- Apply online at SuretyBonds.com.
- Receive a free quote within one business day.
- Purchase your bond online or by phone.
After you receive your physical or digital bond form, be sure to file it with the appropriate state authority to be considered officially bonded.
How Do I Renew My Real Estate School Bond?
Real estate school bonds last for a one-year term and require annual renewal. We’ll send out renewal notices starting 90 days before your bond expires. Pay the renewal invoice and submit any documentation as instructed to maintain your active bond status.
Can I Get a Real Estate School Bond With Bad Credit?
Yes, it is possible to obtain a real estate school bond even with bad credit. However, be aware that this may result in a higher premium. When you apply, we’ll search our nationwide markets to find the best available rate. Apply now to get started!
