License & Permit
Escrow Agent Bond
An escrow agent bond is a license bond required of licensed escrow companies that hold money and documents for real estate or other transactions.
- Required by
- State financial regulators (for example, the California Department of Financial Protection and Innovation)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state for the use of the state and anyone who has a claim against the escrow agent under the escrow law. It promises the agent will follow the law and properly handle trust funds. A claim arises if the agent mishandles or fails to disburse escrowed money.
Who needs it
- Independent escrow companies
- Escrow agents licensed by a state financial regulator
- Applicants for a new escrow license
What the underwriter looks at
- Average trust fund obligations
- Company financial statements
- Owners' credit
- Regulatory history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How is the amount set in California?
Applicants start with at least $25,000. After that it rises with average trust obligations: $25,000, $35,000, or $50,000.
Can I use something other than a surety bond?
California allows an approved irrevocable letter of credit or a cash deposit instead.
Do title agents need this bond?
Not usually. Title agents are typically bonded under insurance law. See the Title Insurance Agent Bond.