The California Prepaid Rental Listing Service Surety Bond is required by the California Bureau of Real Estate.
The California Prepaid Rental Listing Service Surety Bond must be on file with the Bureau of Real Estate in order for a prepaid rental listing service to do business in the State of California.
Each prepaid rental listing service must have this bond in the amount of $10,000 in every location of the business. The bond exists to help satisfy any and all final judgments entered against the Prepaid Rental Listing Services as the result of fraud, deceit, misrepresentation, or unlawful omissions or acts.
This bond ensures that the public and the obligee (the person or entity that required the bond) is protected from fraud, deceit and unlawful omissions on behalf of the bond principal (the person or entity that bought the bond).
This bond is the result of a large influx of unlicensed prepaid rental listing services (PRLS) that were taking advantage of customers in California in 2013. The California Prepaid Rental Service Surety Bond, accompanied with higher barriers to entry for licensees, is meant to combat fraudulent practices and the financial losses of customers.