A Surety bond is a three party document between the surety company (the Obligor), the person who buys the bond (the Principal) and typically a state agency or company (the Obligee). The document binds the purchaser to comply with the terms and conditions of a contract. If the purchaser is unable to successfully perform the contract, the surety assumes the responsibilities and ensures that the contract is fulfilled.
There are four different types of contract bonds. They are:
Bid bond: A bid bond guarantees that the bidder on a contract will enter into the contract and furnish the required payment and performance.
Payment bond: A payment bond guarantees payment from the contractor of money to persons who furnish labor, materials and or equipment and supplies for the use in the performance of the contract.
Performance bond: A performance bond guarantees that the purchaser will perform the contract in accordance with the terms, conditions and law.
Ancillary bond: A ancillary bond is a bond that covers incidentals and essentials to the performance of a contract.
Below are some commonly requested bonds
Motor Vehicle Defective Title Bond
A defective title bond is needed when title to property lacks some or all of the elements necessary to transfer the title. These bonds are $20 per $1,000 needed with a minimum premium of $100.00. The required bond amount depends on the cash price paid for the car or motorcycle.
Motor Vehicle Engine Verifier Bond
This is a state required bond for people who wish to verify vehicle documents against a physical inspection of a vehicle. The required bond amount in the state of California is $5,000. The price and approval of this bond is based on your credit and typically the price is $100.00. This bond renews annually.
Vehicle Registration Services Bond
A Vehicle registrations Services bond is needed when you wish to process applications for the registration of vehicles as a result of the sale of the vehicle or transfer of title. With a vehicle registration services bond you can also renew registration, conduct lien sales and help with the processing of dismantler documents. The price and approval of this bond is based on your credit and typically the price is $100.00. This bond renews annually.
A Lost Trust/Deed Bond
A lost trust/Deed bond is needed when the deed/trust paper work is lost or missing. This bond is typically requested by title companies when property is sold. The price of the bond is based on credit and financial statements. The required bond amount depends on the sale price of the property. The price is $15.00 for every $1,000 of coverage needed with a minimum premium of $100.00 required.
Sales Tax Bond or Board of Equalization Bond
A sales tax bond is typically requested by the state board of equalization to ensure payment of sales tax. The amount of required bond by the sales tax board can vary. The price and approval of this bond is based on your credit and financical statement. The price is $30.00 for every $1,000 of coverage needed with a minimum premium of $250.00. This bond renews annually.
Universal Bond and Insurance Services
Partee Insurance Associates, Inc.
License #0786033 Ph 800-407-2783
Partee Insurance Assoc.
Universal Bond
Lic#0786033
