California 600K Time-Share Blanket Surety Bond
AmeriPro Surety Bonds | 844-589-9732
California Time-Share Blanket Surety Bond; Purpose
The California Department of Real Estate requires businesses who develop time-shares for public offerings to secure a surety bond, known as California Form 600K.
The surety bond, actually, represents one of several options, the other being a letter of deposit, or an escrow account.
The purpose of the surety bond requirement is to serve as a financial guarantee, in favor of your customers who have deposited funds in the time-share, that all funds will be used as contractually agreed upon.
The protections afforded by the surety bond are both applicable to buyers or leasers of time-shares in California.
Amount of the California 600K Surety Bond Required
The amount of the surety bond requirement, according to California Business and Professions Code, Section 11243(c) is equal to or the lesser of:
- the amount of money you would otherwise have to place in escrow (in other words, 100%);
- OR, at least equal to the cost of what it will cost to complete the incomplete time-share property.
Qualifying and the Premium
Qualifying for the California 600K time-share blanket surety bond includes the completion of a signed application and an underwriter review.
To be approved for this surety bond, good credit is required.
As part of the underwriting process, you may be requested to provide “additional information”. Typically, such requests will mean documents demonstrating the organization of your business entity; or, it may very well mean providing of financial statements (i.e. tax returns or banking statements).
These items are not always requested; however, it is wise to have them readily available ‘just in case’.
In instances where the bond amount is especially large, you may invariably expect to be asked for such documentation.
Upon approval of your application, the bond will be offered to you at 1.5%, annually, of the amount of surety required.
Issuance of Your Surety Bond
Once your application is approved, and the premium paid, our agency issues your bond and a Power of Attorney form to you immediately.
Upon receipt, you’ll sign your bond as Principal and then file your bond and POA form to the CA DRE.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, probate, and other surety bonds in all 50 states.
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