North Carolina Service Agreement Bond Guide
If you’re offering warranty titles for properties in North Carolina, you’ll need this bond.
Bond Overview
- Purpose: To ensure that sellers fulfill their warranty agreements
- Who Needs It: Property warranty providers in North Carolina
- Regulating Body: The North Carolina Secretary of State
- Required Coverage: $100,000
- Premium Rate: 1–10% of the bond amount, credit–based
What Is a North Carolina Warranty Bond?
This bond serves as a guarantee that all warranties issued regarding “real property” are followed through. Real property is simply the owned land and the physical properties attached to it.
A warranty bond ensures that any warranties sold regarding a property or its physical structures, like a house, are respected. This bond will be used to settle potential claims if a contract is unrealized.
How Much Do Service Agreement Bonds Cost in North Carolina?
North Carolina service agreement or warranty bonds cost a small percentage of the $100,000 coverage amount, typically 1–10%. For example, with excellent personal credit, you could pay $1,000 for your warranty bond.
Apply for a free quote now! A surety expert will provide your personalized rate within a few hours.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Warranty Bond Work?
SuretyBonds.com provides the fastest and easiest way to get a North Carolina warranty bond. Just follow these quick steps:
- Principal: You, the agent filing the bond
- Obligee: The North Carolina Secretary of State requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of North Carolina General Statues, 58–1–20. If you break warranty agreements, you must reimburse the surety for paid bond claims up to the $100,000 amount.
Who Needs a Service Agreement or Warranty Bond?
A North Carolina warranty bond is required for all sellers or guarantors, who are creating property warranties. Relevant parties must buy their bond before issuing any warranties.
This bond is required for all property warranties, except for the following:
- A warranty made by a properties builder or seller
- A warranty for insurance against defective or broken parts
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a North Carolina warranty bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the Secretary of State as instructed.
How Do I Renew My Bond?
These bonds expire annually. To renew your warranty bond, simply pay your renewal invoice when prompted. Your existing bond will be extended for another term if no issues arise.
We’ll begin contacting you by phone and email 90 days before your expiration date.
