New Title Company

[chefman]

I am a new company in the mortgage business and I want to start doing title work as well. I have inquired of the state and it is required that I get a Title Agency Surety Bond for 50,000. What exactly does this cover? Does this cover me with issues that may arise if Title Work I would perform is incorrect? Do I have to put up the entire $50,000?

[Admin]

The bond protects the public, not your company. You will need E & O insurance to protect your company from it's own mistakes.

As for the cost, you will pay a percentage of the bond amount, which can range drastically from 1-20%.