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How much does an escrow agent bond cost in California?
The California Department of Business Oversight requires escrow agents to post surety bonds. The amount of the bond depends on the escrow liability of the company, but cannot be less than $25,000 or more than $50,000. For each additionally licensed office, the bond amount increases by $5,000.
Premiums for this bond are subject to underwriting, which means the price you’ll pay for your bond depends on a review of your personal credit report. Since both the required amount and cost of this bond vary, we suggest connecting with one of our surety experts to receive your free bond quote fast!
We can typically provide you with a free, personalized bond quote within one business day of receiving your application. Complete our online bond request form or call 1 (800) 308-4358 to get started!
Why do I need this bond?
By posting a California escrow licensee bond, the principal (escrow agent) and any and all agents and employees of the principal pledge to abide by all provisions of the Escrow Law and all rules and regulations made by the Commissioner of Business Oversight of the State of California.
If the principal fails to comply with these terms and the state or any person suffers financial loss as a result, the surety will cover any damages up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
What’s the fine print?
California escrow licensee bonds run continuously until canceled. The surety can cancel the bond in accordance with the provisions of Sections 996.320 and 996.330 of the Code of Civil Procedure of the State of California. Cancellation becomes effective 30 days after the commissioner receives the notice. Notice of cancellation must also be given to the Escrow Agents’ Fidelity Corporation.
How to become an escrow agent in California
Independent escrow companies must obtain licenses from the California Department of Business Oversight before they can conduct business. Controlled escrows could be owned and operated by a number of entities, so the licensing requirements and regulations vary depending on the type of license being applied for. Independent escrow companies, however, must include the following in a completed license application:
- Proof of membership in Escrow Agents’ Fidelity Corporation (EAFC)
- Proof of minimum financial requirements (liquid assets in excess of current liabilities of $25,000 and tangible assets in excess of total liabilities of $50,000)
- Proof of surety bond
- Background check
- Proof of a manager with at least 5 years of responsible escrow experience at each location during office hours
- Signed affidavit
- $625 application fee and a $425 fee for each additional location
More information on licensing requirements for independent escrow companies in California can be accessed from the Additional Resources section of this page.
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