Posted by Tim, MD on 6/17/05 2:34pm
Msg #45578

What are the chances of using surety bond ?

As many of you know, one of the requirement to get the $ 100 00 surety bond is to have liquid access for the same amount. I am thinking of declaring my condominium, which will be enough for this purpose. My question is for all of you folks.. what are the chances of using this bond? any of you had to use it before? . It really concerns me the fact that if something goes wrong with the closing, meaning other people's misconduct, I would somehow liable and affected and my property would be put at risk .. Please I really need to put my mind at ease. My wife is kind of reluctant to sign the bond application (she is in the deed of trust). Shoul I be better off not declaring my property and therefore pay high premiums ? Thank you for your input and have you all a nice weekend!.

Reply by Bonnie on 6/17/05 3:37pm
Msg #45605

I wouldn't use my property. I'm with your wife.

Reply by TimMD on 6/17/05 6:51pm
Msg #45675

Bonnie .. are you in Maryland?

If you are in Maryland and did not use your property, I assumed you paid a high premium, unless of course you have other assests. Can you share with me your personal handling with regards to this matter ?

Reply by Art_MD on 6/17/05 3:41pm
Msg #45608

I've queried this board re: if anyone ever had either the E&O or surety bond pay anything. No one knew of a case.
The cost of the bond should be 500-750 a year. Might be worth it to have peace of mind. And keep the wife happy!!!!.

Remember, the TCs and SSs know the extra costs to do closings in MD and pay (sometimes reluctently) higher fees.

Art

Reply by TimMD on 6/17/05 7:00pm
Msg #45677

Art.. are you sure ?

I was told by Brad from Chesapeake that the premium would be $ 525.00 for two years, the same time the TPL is valid. Please reply.. are you paying in a annual basis ?

Reply by Art_MD on 6/18/05 7:04am
Msg #45809

Re: Art.. are you sure ?

I gave a range of max cost. It can depend on your financial situation. With a surety bond, the bonding company wants to be sure that there are asset it could go after if it has to pay.

The rate you got quoted is a good rate.

Art

Reply by Barry/FL on 6/17/05 3:41pm
Msg #45609

Are you talking about the bond required by the state, or do you mean E & O Insurance? What state requires only $100.00? Are you certain you want to risk your home over business?

Reply by TimMD on 6/17/05 6:46pm
Msg #45672

Barry , my mistake.. it is $ 100 000 surety bond

Of course I do not want to put my home at risk.. that's why I tryng to get some advise or get other's notaries experience. For instance , has anybody here in this forum done this in order to get the bond? is this commun ? o rather unusual .. I was kind of hoping to get more input from my fellow notaries in Maryland. I have until monday to make up my mind.. either convince my wife to sign the bond application or tell the insurance company that I am having second thoughts, that I do not qualified for the 525 bond as I am not going to declare my condo.. and see what they say and how much I will be charge. I guess if the difference is a couple of hundred I wont have to think too much. don't you think ? Thanks Barry

Reply by Barry/FL on 6/18/05 2:41am
Msg #45801

Re: Barry , my mistake.. it is $ 100 000 surety bond

The $100,000.00 E&O insurance does not, as far as I know, require anyone to use his home as collateral for the policy. I do not know of any state government that requires a bond this high either; therefore, I would never place my home on the line for a business where other people's errors can cost me my home. A good attorney will "dot his /i/'s and cross his /t/'s in the event someone suffers a loss in a transaction in which you were involved.

I know E&O insurance is offered through organizations and agencies such as NNA and Troy Fain (most policies I believe are underwritten by Western Surety), and the price for a $100,000.00 policy is only $60.00 a year (in Florida anyway).

If you are referring to something else, then I am curious and need more information to build my knowledge base.

Reply by FL-Signaway on 6/17/05 3:50pm
Msg #45611

My mother has been notarizing over 30 years and has never had to use her bond. But OUCH if your premiums are that high in MD, here they are much lower, which that alone would make me question, why the high difference? Does MD have a higher rate of notaries needing to use the bond? Have you checked into NNA bonding you?

Reply by TimMD on 6/17/05 6:56pm
Msg #45676

That's a good question... anybody from MD ?

I checked the NNA , unfortunately the don't have bonds for Maryland available.. Thanks anyway for the input.

Reply by Traci/ MD on 6/17/05 7:59pm
Msg #45692

Re: That's a good question... anybody from MD ?

I set up my company as a LLC. Just to protect my personal assets. Have you look to see what the cost of the bond would be?

Reply by TimMD on 6/17/05 8:09pm
Msg #45695

Tracy , yes I have

Cheasapeake $ 525 if I "qualified".. well, with the condo I do qualified, and also a 625 or 650 fico score. I was told that bond is for two years with one time premiun ( 525.00), but I was asking Art on a previous post if the premiun have to be paid in an annual basis. how do you pay yours ? Thanks Traci

Reply by Traci/MD on 6/17/05 9:01pm
Msg #45706

Re: Tracy , yes I have

Hey Sorry Missed the post to Art.... I have my life & Health insurance license. I worked for an Insurance broker. You can pay annually. The premium is discounted if you pay two or three years in advance.( Some Companies) I know some LTP paying $1200 a year. $650 is the going the price. I wish you well! This is a crazy business... I live on the Eastern Shore. Where in MD are you from?