The Texas Real Estate Commission requires the Texas Real Estate School Surety Bond.
The Real Estate Commission requires the Texas Real Estate School Surety Bond to be on file and in the amount of $20,000 with a one year term. However, the bond will not cost $20,000 to obtain. The cost of this bond starts at $300 for the year.
The bond states that the bond holder will faithfully perform their duties and comply with the Texas Occupations Code, as well as and the rules of the Texas Real Estate Commission. While this might sound like a license, it is not. Surety bonds serve as a form of consumer protection. They do not replace a license or insurance.
This bond is required in order for real estate schools to legally be allowed to operate. It ensures the real estate school will practice lawfully and in accordance with all rules and regulations that pertain to them. This is important because it makes real estate schools financially accountable for their actions. Because of this bond, if real estate schools financially harm or deceit students, a claim can be placed on the bond and the student can seek compensation.