License & Permit
Real Estate Broker Bond
A license bond some states require from real estate brokers before they can get or renew a license.
- Required by
- State real estate commissions in some states
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond is payable to the state (the obligee) for the benefit of anyone harmed. It guarantees the broker will follow the real estate license law, and a client who loses money because of the broker's violation, such as mishandled deposits, can sue on the bond.
Who needs it
- Real estate brokers
- Real estate firms
- Salespersons, in the few states that require it
What the underwriter looks at
- Broker credit
- Licensing and complaint history
- Escrow account practices
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
Does every state require a real estate broker bond?
No. Most states rely on license law and recovery funds instead. New Hampshire, for example, requires a bond of at least $25,000 payable to the state for anyone aggrieved.
How is a claim made?
In New Hampshire, an aggrieved person may sue on the bond in their own name. The surety's total liability to all claimants is capped at the bond amount.