As a condition of licensing in Michigan, real estate brokers are not typically required to obtain a surety bond.
An exception exists for the surety bond requirement in cases of disciplinary actions or in cases of license suspensions and as condition of reinstatement.
If LARA has required you to obtain a surety bond, AmeriPro Surety Bonds facilitates this bond in the amount required.
Michigan real estate brokers who have been denied a real estate license, have had it suspended or have had a license revocation may be required, as a condition of licensing or reinstatement, to obtain a surety bond (Section 339.2513 of the Occupational Code).
The bond is required as a financial guarantee which protects the state of Michigan and any persons who may suffer harm due to the failure of a licensee to comply with all rules and regulations governing real estate brokering.
By statute, the amount of the Michigan real estate broker bond caps at $5,000. The bond also can be required for no more than 5 years, though as a surety bond it will renew on annual basis.
The premium for this surety bond will be determined by the following:
As a broad general rule, even the $5000 surety bond amount will have an annual premium that will be only a few percentages of the bond’s amount; however, the final amount will be determined by the criteria as stated above, and may therefore vary.
The Michigan real estate broker bond will either renew on an annual basis, or you may be given the opportunity to prepay the bond for a period of years. If the latter option is available, there will be a small saving involved over paying yearly.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Michigan.
Our agency also provides surety bonds nationwide.
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