What is a surety bond in real estate?
A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract.
What is a bond in real estate?
A mortgage bond is a bond secured by a mortgage or pool of mortgages. These bonds are typically backed by real estate holdings and/or real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.
How does a surety bond work?
The obligee is the entity that requires the bond. Obligees are typically government agencies working to regulate industries and reduce the likelihood of financial loss. The surety is the insurance company that backs the bond. The surety provides a line of credit in case the principal fails to fulfill the task.
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Real Estate Agent Broker Bond Guarantees faithful accounting for monies or properties turned over to an agent/broker in connection with a real estate deal.
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explains what a Real Estate Closing Agent Surety Bond is, who is required to purchase one, and how to get a free quote.
Real estate broker bond guarantees faithful accounting for monies or properties entrusted over to anagent/broker in connection with a real estate transaction.