Notary Bonds

Published by admin | Filed under Bonds

Most people know that many aspects of a remodel, particularly a large one, involve a surety bond. The mortgage broker you use for your financing is required to be bonded, as is the contractor you hire to actually perform the remodel. Each is required to maintain a current surety bond to protect you during your project. These bonds serve as an additional bit of financial security for you when you’re getting ready to begin a home improvement project or obtaining a mortgage.
Basically, contractor surety bonds assure that you, the homeowner, is protected during the course of the project. If, for some reason, your contractor doesn’t complete the work as is stipulated in the contract, the surety company will step in and enforce the bond, either by issuing a payment to you or by finding someone else to step in and complete the work.

Mortgage surety bonds are issued to a mortgage broker and serve as consumer protection against errors and omissions as well as fraudulent practices on behalf of the broker. In most states, mortgage brokers must retain their bond at the same time they are licensed to provide loans.

While the majority of consumers know about mortgage and construction bonds, perhaps many people are unaware that notary publics must also retain bonds. A notary public witnesses legal documents, collects sworn statements, and administers oaths. Because of the potentially critical nature of their duties, notary publics are also required to be bonded and must purchase a surety bond in most states prior to beginning their notary duties. Like other surety bonds, the notary bond protects the public from any mistakes made by the notary, including negligence, dishonestly, or omission.

Notary bonds are generally extremely unexpensive and can be purchased with errors and omission insurance for a bit of added coverage. The cost is generally around $100 for both of these items, and a surety bond alone is only about $50 for $15,000 in coverage which should be more than substantial for the vast majority of notaries.

Just like any other surety bond, the notary bond is in place to protect YOU, the consumer. It’s always a good idea to ask any notary you deal with, therefore, whether or not they are bonded. After all, in the unlikely event that something does go wrong, it’s good to have the confidence that a remedy does exist for the situation.