Escrow or title agents who wish to conduct business in Arizona are required to be licensed with the Arizona Department of Financial Institutions (AZDFI), pursuant to Arizona Statutes ARS 6-813. To obtain this license, a $100,000 Arizona Department of Financial Institutions Surety Bond for Escrow Agents is required.
The Escrow Agent Bond offered by Jet serves as a promise to the AZDFI that escrow agents will operate in a safe and secure manner regarding the transfer of funds from one party to the other.
After you have applied for the bond, an underwriter will review the submission. In some cases we may require a review of business financial statements to determine the quote, but once approved rates start at $38 monthly or $375 for 1 year.
Jet is the only surety carrier offering a monthly option for this bond. Purchase the bond with our low monthly rate and cancel at any time. Your bond will stay active so long as the automatic monthly payments go through.
In order to ensure the robustness and safety of the financial services industry, the AZDFI places heavy regulation on financial enterprises and institutions. To promote this obligation, Arizona Statute ARS 6-814 legally requires all escrow agents in Arizona to purchase a $100,000 Escrow Agent Bond. The surety bond guarantees that both parties involved in an escrow process will be protected from any potential embezzlement or unlawful acts during the transfer of funds by the escrow agent. Simply stated, surety bonds give both parties the ability to collect from damages sustained up to the bonding limit and Jet provides that guarantee as a third party bound by our duty as a surety company.
Jet’s role here is a promise of financial security to the AZDFI that the legal duties of an escrow agent are performed. Our goal is to have your back for the lowest possible cost to you.
Jet will take care of the bond filing process for you! Jet will send an original signed and sealed Escrow Agent Bond to the Arizona Department of Financial Institutions. We will also send you a copy via mail for your own records.
For new applicants who prefer to file the original bond with the initial license application, select the option during the bond checkout to do so. The license paperwork and original bond form should be uploaded through the AZDFI’s license portal.
The Nationwide Multistate Licensing System offers an option to manage licensing on their platform. Once again, Jet can file the bond for you with the NMLS, but you would need to approve us as your surety company in the NMLS system.
Any physical material requested by the AZDFI would need to be sent to the following address:
Arizona Department of Financial Institutions
100 N 15th Ave, Suite 261
Phoenix, AZ 85007
Yes, the bond can be cancelled and a refund provided from Jet. All it takes is a simple request from you to Jet through mail or email. Jet will cancel the bond with the AZDFI. There is a 60 day cancellation grace period the AZDFI observes, thus keeping the bond active for 60 days from the time they receive the cancellation notice from Jet.
If there is any unearned premium remaining, Jet will calculate it at the point of release from the AZDFI, and a refund will be provided. Jet will have to wait 60 days before stopping the auto-withdrawal.
Not if you are a monthly payment subscriber with Jet! As long as automatic payments occur, the bond will stay active.
If you are an annual payment subscriber, Jet will reach out to you regarding the renewal of your Escrow Agent Bond though direct mail and email. The only action Jet requires is payment to renew which can be done via card or check, and even done in moments over the phone.. No additional paperwork is required. Per usual, a copy of the updated bond and receipt of purchase will be sent to you directly.
Escrow agents are required to perform their lawful duties pertinent to Arizona Statutes ARS 6-837, and should be familiar with all rules and regulations prior to conducting any business. Escrow agents must securely hold a third party’s funds until both parties have fulfilled their contractual requirements as agreed upon before the transfer of title or funds. Jet has summarized the most important points from the pertaining legislature below:
|Violations & Means for Bond Claim
|Inflicting either party with unlawful fees during the escrow process
|Sustaining financial solvency during business operations
|Failing to provide records and contract agreements to the AZDFI during investigation
|Maintaining accurate and current accounting and finance records of all business transactions
|Failing to release funds to either party during escrow in a timely manner agreed upon
|Upholding bonding requirements and financial responsibilities according to the AZDFI
|Operating with discrepancies of escrow rates between two parties
|Dealing in honest and open conduct during the escrow agent process
|Paying commission as an inducement or as compensation during the escrow process
|Giving adequate notice to both parties regarding reasonable deposit procedures
Any party that experiences financial impairment due to an escrow agent violating licensure laws can file a complaint to the AZDFI . The Department may investigate the complaint and, if necessary, foist disciplinary action against the escrow agent.
If the escrow agent fails to rectify fiscal damages caused, a claim may be made upon surety bond. Claims may be filed against the surety bond, but only within three years of the apparent incident.
Promptly reach out to Jet regarding a claim notice on your Escrow Agent Bond, and provide all relevant information about your case to Jet so that we can conduct an investigation on your behalf as soon as possible. Jet will defend our customers against fraudulent and other illegal charges related to the bond claim.
Jet will provide payment up to the maximum bond limit to those who have been affected, should the claim be validated. The escrow agent must repay the surety company for paid out claims, as they are still responsible for their fraudulent or negligent actions.. A surety bond, unlike an insurance policy, is a guarantee a payment will be made by the third party surety carrier and does not transfer the fault or relieve the indemnity of the guilty party.