North Carolina Property Warranty Bond

North Carolina Property Warranty Bond

Under North Carolina’s Secretary of State regulations, those wishing to sell warranties incidental to the sale of real property must obtain the $100,000 Warranty Sales of Real Property Bond, otherwise known as the Property Warranty Bond. The bond is a financial guarantee for any person who sustains fiscal damage by the seller due to a breach of the warranty agreement or contract. 

PURCHASE PROPERTY WARRANTY BOND

Unlike other surety companies, Jet cuts out middleman brokers and writes bonds directly. Jet does this to eliminate costs so we can offer you the most affordable bond prices. 

What Is the Cost of the North Carolina Property Warranty Bond?

When you purchase with Jet, the Property Warranty Bond can cost as low as $750 annually or $75 monthly. The application review process for the Property Warranty Bond evaluates criteria such as personal credit, business information, and details pertaining to the warranty agreement or contract. Jet makes this process quick and once provided with an approved rate you are able to purchase the bond directly online.

Can Jet File the Property Warranty Bond For Me?

Yes, the Jet team can file the bond for you! A signed and sealed original bond form must be filed with the North Carolina Secretary of State. The Property Warranty Bond must remain active and on file with the state office for the entire duration of the warranty seller’s operation. After your purchase of the bond has been completed, Jet will send the original signed and sealed bond to the Secretary of State and email you a copy for your personal records.

If you prefer to file the bond yourself, our application process allows you to select that option. The original bond form should be mailed to the following address:

NC Secretary of State
Service of Process Agent
P.O. Box 29622
Raleigh, NC 27626-0622

What Is the Purpose of the North Carolina Property Warranty Bond?

The Secretary of State requires those who sell warranties incidental to the sale of real property to acquire the North Carolina Property Warranty Bond. The purpose of this bond is to ensure that the public will receive financial reimbursement in cases of the seller breaching a warranty agreement or contract.

How Does a Seller Avoid Claims on the Property Warranty Bond?

Real property warranty sellers are expected to follow all rules and regulations pursuant to North Carolina General Statutes 58-1-20, 66-373, and individual warranty agreements or contacts. Failure to comply may result in financially damaged buyers submitting formal complaints to the Secretary of State. Civil action may also be taken and could eventually lead to a Property Warranty Bond claim.

A key reason for a bond claim would be the seller breaching their warranty agreement or contract with the buyer. For example, sellers that offer warranty agreements to the sale of real property such as an AC unit are guaranteeing to the buyer that the AC unit will be replaced if it suddenly stops working. When replacement is not possible, the seller will be obligated to refund the full payment of the property to the buyer. If the seller does not honor the warranty and refuses to give a refund, the buyer is entitled to pursue civil action that could lead to a reimbursement of financial damages through a claim on the bond. 
Before a bond claim is filed, the damaged buyer may file a formal complaint with the Secretary of State’s office. Unfortunately, the Secretary of State cannot commence action on behalf of the damaged client for the recovery of lost funds and may advise the buyer to take civil action upon their own accord. It is in the best interest of the warranty seller to work with the buyer directly on resolving the complaint before civil action and a bond claim is pursued.

What Happens If a Claim Is Filed On the Property Warranty Bond?

It is important to note that a damaged buyer may not take civil action against the seller after the expiration of 10 years from the date the breach of the warranty agreement or contract occurred. 

In the event that you are served with a court ordered bond claim payout, immediately notify Jet so we can proceed with sending the required written notice of the bond claim to the Secretary of State. The Jet team will then commence a review of the claim details and court investigation. Although Jet does its best to protect our bond holders from faulty claims, there is little we can do when a claim has been validated by a state court. 

Jet will make payment on valid claims up to the bond limit with court fees included. The warranty seller is ultimately responsible for their actions and must reimburse Jet for the paid out claim. Failure to do so will result in future difficulties obtaining a surety bond in North Carolina, including the Property Warranty Bond.

How Does the Bond Application Process Work With Jet?

The Jet team takes great pride in making our online bond application quick and simple! The North Carolina Property Warranty Bond application will ask for general information such as the seller's social security number, business info, and details of the warranty agreement or contract. For an approved rate, a soft credit check will be completed in addition to a review of information by an underwriter. Once a rate is provided and you have chosen one of Jet’s annual or monthly payment options, just make payment and Jet will take care of the rest! 

PURCHASE PROPERTY WARRANTY BOND

Do Sellers Need to Renew the Property Warranty Bond?

Not with Jet! Our monthly payment option eliminates the need for renewal! Bond payments will continue to come out of your preferred account until cancellation is requested. 

If you would like to go with the annual payment option for this bond, Jet will send you an invoice prior to the bond’s expiration. Unlike other surety companies, Jet will not require a renewal fee or any extra paperwork. The annual payment is all that we ask for upon renewal.

Can the North Carolina Property Warranty Bond Be Cancelled?

The Property Warranty Bond is continuous until cancelled. With Jet, you can cancel the bond at any time. Just send us a cancellation request, via email or mail, and we will proceed with mailing a written cancellation notice to the Secretary of State’s office. Your liability of the bond will be released within 60 days of the notice’s delivery date. 

The Secretary of State can also choose to terminate your bond upon their own accord. This scenario is rare, but Jet will immediately notify you of the bond termination upon receipt of the notice. Liability of the bond will be released within 30 days of the termination notice delivery date to Jet.

If you had chosen the monthly payment option, Jet will charge for that 30- or 60-day period as the bond remains active during that time. If the annual payment option has been chosen, the Jet team will review the bond to see if there is any unused premium available for reimbursement to the seller.

North Carolina Property Warranty Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: