Texas Title Agent Bond Guide
Texas title agents solicit title insurance and collect policy premiums on behalf of an insurer. They may also offer escrow, settlement and closing services.
Learn how to get your title insurance agent bond required for licensing in Texas with this quick guide.
Bond Overview
- Purpose: To protect consumers from harm if title agents break provisions of the Texas Title Insurance Act
- Who Needs It: Title agents and direct operations in Texas
- Regulating Body: The Texas Department of Insurance
- Required Amount: $5,000–$150,000, based on the county population
- Premium Rates: Start at 1% of the bond amount, credit-based
Keep scrolling for everything you need to know about how title insurance agent bonds work in Texas.
What Is a Texas Title Agent Bond?
Title insurance providers validate title documents for the transfer of real estate between buyers and sellers. They protect buyers and lenders if there are unknown title defects (such as liens or false information) in residential real estate transactions.
Who Needs a Title Agent Bond?
All Texas title agents must file a form of financial security to comply with the minimum capitalization requirements. Common options include:
- Surety bonds
- Cash or cash equivalents
- Unencumbered real estate
- Letters of credit
- Certificates of deposit
Learn about the pros and cons of surety bonds vs. letters of credit in our blog post.
Title insurance direct operations must also file a surety bond. A direct operation simply refers to a title insurance company that conducts settlement agent duties.
How Much Do Title Agent Bonds Cost in Texas?
The direct operations title agent bond amount must be equal to 10% of your company’s gross premium written in the latest statistical report with a $10,000 minimum.
The required Texas title agent minimum capitalization bond amount depends on the population of the county in which your office is located:
- $25,000 Bond: 10,000–50,000 county population
- $50,000 Bond: 50,000–200,000 county population
- $100,000 Bond: 200,000–1,000,000 county population
- $150,000 Bond: 1,000,000+ county population
Select your bond below to get a free quote today.
SuretyBonds.com offers the lowest rates available from our nationwide network of surety providers with no added fees.
How Does a Texas Title Insurance Agent Bond Work?
These bonds protect consumers by providing a means of compensation if an individual is harmed by a title agent’s unlawful actions.
A title agent bond form is a legal contract between three parties:
- Principal: The Texas title agent/direct operation purchasing the bond
- Obligee: The Texas Department of Insurance (TDI) office or division requiring the bond
- Surety: The provider issuing the bond
If the principal breaks the bond terms, harmed clients can file claims to reimburse financial damages up to the full bond amount. The Insurance Commissioner can also file a bond claim if you are not compliant with minimum capitalization standards.
The surety will validate and pay claims but then ultimately seek repayment from the bonded title agent.
How Do I Get a Title Agent Bond in Texas?
SuretyBonds.com provides the fastest and easiest way to get a Texas title agent bond. Just complete these four steps:
- Apply: Request a free online quote.
- Quote: Receive your personalized rate.
- Purchase: Pay and sign your documents via DocuSign.
- Submit: Receive your official bond form via email and file it with the TDI.
If you have any questions, we’re here to help at each step. Just call 1 (800) 308-4358 to speak with a friendly surety expert.
How Fast Can I Get My Bond?
With SuretyBonds.com, you could get your Texas title agent bond as quickly as same-day. We process most bonds within 24 hours or less. Apply now to get started!
Can I Get Bonded With Bad Credit?
You are likely still eligible for a bond even with bad credit. We work with a variety of markets to offer affordable bonding options for applicants with all credit scores. View our Surety Bond Cost FAQ page to learn how credit typically impacts premium rates.
How to Renew Your Title Agent Bond
Texas title insurance agent bonds are continuous until cancelled. This means all you need to do is pay your renewal invoice each term to maintain an active bond policy. You do not need to file any updated paperwork at renewal.
The surety can cancel the bond at any time by giving at least 30-days written notice to the Department of Insurance.
How to Become a Title Insurance Agent in Texas
The Texas Department of Insurance (TDI) oversees title agent licensing. You can apply to become a title insurance agent in Texas by following these quick steps:
- Provide proof of a surety bond or other financial security proving coverage for escrow officers
- Apply online through Sircon
- Enter the required information
- Attach all supporting documents
- Pay the $50 fee and submit application
If you have questions, contact the TDI directly at [email protected].
