Texas Residential Service Company Bond

The Texas Real Estate Commission requires the Texas Residential Service Company Bond for all residential service companies. These are companies that offer residential service contracts (home warranties) to consumers for services related to the mechanical failure or failure of an appliance or household system due to normal wear and tear.

What is the purpose of a Residential Service Company Bond?

The Texas Residential Service Company Bond states that the bond holder will faithfully perform its obligations to the persons contracting for its services. It also states that they will comply with all rules and regulations of the Texas Real Estate Commission pertaining to it. The purpose of this bond is to provide financial compensation for those your company may have wronged. It protects both the state and the public from financial harm and it offers a mechanism for compensation. The Texas Residential Service Company Bond does not act as the license, nor does it act as insurance. Surety bonds such as this one are a form of consumer protection, not a license or insurance.

The Texas Residential Service Company Bond must be in the amount of $25,000. The Texas Real Estate Commission requires this bond as a part of the application process for the Residential Service Company License. This bond must be on file in order to apply for the license and in order to maintain the license.

Additional Requirements:

• Copy of the organizational documents 
• Copy of any bylaws, rules, etc
• Name, address and position of each person who will be responsible for the company’s affairs
• Financial statement
• Description of the company’s proposed method of marketing
• Statement regarding the company’s sources of working capital
• Copy of the residential service contract
• Copy of the scheduled charges associated with each contract 

How do I obtain a Texas Residential Service Company Bond?

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.