There are different types of surety bonds in Arlington, based on their purpose. The basic legal purpose of a surety bond, however, is the same for all types. The surety bond safeguards the interests of the public, ensuring that business owners operate according to the specific state and city laws and regulations.
Let’s take a look at the most popular types of bonds in the city of Arlington:
Most Popular Surety Bonds in Arlington
In Arlington, as well as across the rest of Texas, the motor vehicle surety bond is fixed at the same amount for all dealers: $25,000. The bond is required by the Texas Department of Transportation and it’s valid for two years.
Credit services organizations in the State of Texas are obliged to post a $10,000 surety bond. These bonds are in effect until canceled, but the surety needs to give a notice of cancellation no earlier than 60 days to the Secretary of State.
The Texas sales tax bonds serve as a safety measure guaranteeing that retailers and other businesses pay taxes on all items they sell. These bonds are required by the Texas Comptroller of Public Accounts in order for businesses to get a license or permit in the state.
Before moving on to conducting their business, contractors in Arlington are obliged to get a permit. Executing a City of Arlington Contractor License & Permit bond is a mandatory step in the process of obtaining your license and performing the contracted work.
The home improvement bond is a form of contractor’s bond. It ensures that the contractor performing a home improvement work will comply with the specific laws and regulations. The bond is also a guarantee that the contractor has the necessary financial backing in case they violate the agreement and a claim is filed against them.
The Texas Department of Insurance requires individuals or businesses planning to operate as title insurance agents to obtain a title agency bond, as a mandatory step of their licensing. The bond amount is equal to 10% of the agent’s gross premium, usually ranging between $10,000 and $100,000. The required bond amount for title attorneys is $7,500.
Questions about Surety Bonds in Arlington, Texas
Overview of the Arlington surety bonds
Arlington surety bonds serve as a contract between three parties. The side posting the bond is the principal, the side requiring it is the obligee and the side underwriting the bond is the surety. In this agreement your business is the principal and the city or state authority is the obligee.
Businesses or individuals breaking the contractual agreement of the bond may face a bond claim. Claimants can get a compensation up to the maximum penal sum of your bond. You should avoid claims at all costs, as even though the surety covers the initial compensation, it’s up to you to reimburse it eventually.
If you want to learn more about how the bonding process works, you can contact us at (877) 514-5146. Our experts will answer all of your questions.
How much does a Arlington bond cost?
The final bond cost is formed on the basis of the bond amount that you have to post. The bond premium is a small fraction of the whole amount, a percentage usually varying between 1% and 5%, if you have a stable financial background.
The most important factors that surety companies take into account when considering your bond application are your personal credit score, business financials or any liquid assets you can present. The higher your score, the lower bonding rate you will get.
What if I have bad credit?
It is possible to get bonded even you have bad or no credit. Lance Surety Bonds created a Bad Credit Program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.
A realistic bonding rate for bad credit applicants is in the range between 5% and 15%. As we’ve partnered up with a number of A-rated, T-listed surety companies, you can be sure that you will get a top rate, no matter what your assets are.
How do I apply for a Arlington surety bond?
Getting your Arlington bond can be as easy and quick as accessing our online application. If you want to get an exact bond bond price, just fill out the application and let us know about your credit score.
For more details on the bonding process, visit our How to Get Bonded page or simply call our experts at (877) 514-5146.