Virginia Title Agents Need a Surety Bond

Title insurance protects a buyer and the lender from financial loss when real estate property is purchased. If there are defects in the title, the property cannot legally transfer full ownership to a buyer until the defects are cleared.

Virginia Title Insurance Settlement Agents must be in compliance with the provisions and laws, rules, regulations and orders of the Commonwealth of Virginia. This includes obtaining a license and a $200,000 surety bond.

Licensed and Bonded

Settlement Agents must register with the Virginia State Corporation Commission, Bureau of Insurance. Licensing requirements include:

• Take a pre-licensing course of 16 hours and pass the examination
• Apply for a license
• Obtain errors and omissions or malpractice insurance policy for $250,000
• Purchase a blanket fidelity bond or employee dishonesty insurance policy for $100,000. If the agent has no employees, they may apply for a waiver.
• Obtain a surety bond for $200,000

The surety bond protects the property buyer from unlawful actions by an agent. It involves three parties: an obligee, a principal, and a surety. The obligee is the entity that requires the bond, which in this case is the Commonwealth of Virginia. The principal is the agent that is required to obtain the bond. And the surety is the surety company that writes the bond, such as SuretyGroup.com.

How Much Will This Bond Cost?

The premium you pay for a Title Insurance Settlement Agent Surety Bond depends on your business and personal financials. Our rates start at .75% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Title insurance is not required by law, but many lenders require it for their loans.

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