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.
- 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?
Complete our easy to navigate online application. Within one business day, one of our licensed agents will contact you with a no-obligation quote for your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bond experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.
How to Get Your Texas Residential Service Company Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.