North Carolina Real Estate School Bond
Private real estate schools wishing to provide post-secondary real estate instruction or education must first be approved and licensed by the North Carolina Real Estate Commission (NCREC). The $5,000 Real Estate School Bond, otherwise known as the Private Real Estate School Performance Bond, is required as a step in the initial or renewal license application process. The surety bond ensures that the school complies with contractual obligations to students and acts as a reimbursement guarantee for students who may be financially harmed by the school.
PURCHASE REAL ESTATE SCHOOL BOND
If you are looking to initially apply for or renew a real estate school license, Jet can help you secure the Real Estate School Bond quickly and at an affordable price.
How Much Does a Real Estate Bond Cost?
With Jet, pricing for the $5,000 Real Estate School bond starts at $100 annually or $10 monthly. You can find a price chart with monthly and 1-, 2-, or 3-year payment options for preferred credit below. All rates are based on the personal credit of the real estate school’s owner.
| bond limit | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
Unlike other surety companies, our monthly payment option requires no down payment and there is no interest to ensure that the Real Estate School Bond will be affordable regardless of your credit. You are able to apply, purchase, and have your bond fully executed instantly online.
How Is the Real Estate Bond Filed?
Jet can take care of the bond filing for you! Let the Jet team know which county your private real estate school is located in, and we will mail the original bond form to the county’s superior court. The NCREC also requires a digital copy of the bond to be uploaded by the school’s owner so Jet will provide you one.
According to the NCREC, an original signed and sealed surety bond is to be filed at the superior court in which the real estate school’s administrative office is located. If you are a pre-licensing applicant, the filing of the bond should not be conducted until the Commissioner of the NCREC instructs you to do so. The Real Estate School Bond must remain on file with the court throughout the entirety of the school's operation.
Real estate school license applications are all online. The NCREC asks that you submit a digital copy of the bond with the original approval license application or the renewal license application. If you need to mail any additional documents to the NCREC, you can find their mailing address below.
North Carolina Real Estate Commission
P.O. Box 17100
Raleigh, N.C. 27619-7100
Why Is the Real Estate School Bond Required?
The North Carolina Real Estate Commission’s primary function is to license and regulate real estate agents and institutions that offer post-secondary real estate educational services. The NCREC requires the private real estate school license and surety bond to assure students that all North Carolina schools meet quality institutional standards in their operations and are financially responsible when handling students tuition. The Real Estate School Bond ensures reimbursement of tuition or fees to students who were financially harmed by the school.
How Do Claims on the Real Estate School Bond Arise?
The private real estate school’s owner(s) and instructors are expected to follow all NCREC licensing laws in accordance with North Carolina General Statutes 93A, Article 3 and Commissioner Rules Series 58H.0200 and .0300. Failure to comply with such rules and regulations may result in school investigations, a misconduct hearing with the NCREC, suspension or revocation of the school’s license, civil action, and a possible bond claim.
A key reason for a bond claim would be if a student has not received contractual education instruction from the school for which they have submitted a fee or prepaid tuition, resulting in monetary loss of said student. This generally occurs when a school cancels courses or closes down due to financial hardship or a loss of license from the NCREC. Private real estate schools are legally obligated to reimburse students for such loss.
In the event a school cancels a course or closes down its operation, registered students must be notified within 24 hours and refunded all prepaid payments within 30 days of the cancellation date. Students facing a course cancellation may only request to apply the refund toward another course. Students facing closure of their school may inflict civil action on the school if they do not receive reimbursement for unused fees and prepaid tuition within 30 days of the school ceasing operation. The civil suit is required to be filed with the Wake County Superior Court within one year of the alleged default. Not handling civil penalties can result in a claim against the license bond. It is in the best interest of the private real estate school to initially refund all prepaid fees and tuition to financially damaged students to avoid a bond claim.
What Happens If a Claim is Filed on the Real Estate School Bond?
Immediately contact Jet upon receipt of the court ordered bond claim payout notification. Jet will proceed to review all the bond claim details. Although the Jet team does its best to protect their bond holders from faulty claims, this claim notice will come from the Wake County Superior Court that has already conducted a thorough investigation with the determination that the claim is justified. With this in mind, there is only so much Jet can do other than provide payment to the financially damaged student(s).
If the claim is justified by the superior court, Jet will make payment up to the $5,000 bond limit. The owner of the private real estate school is ultimately responsible for their actions and must reimburse Jet for the paid out bond claim, in addition to court costs and 6% interest from the date of payment of said tuition amount. Failure to do so will result in difficulties obtaining future bonds. This includes the Real Estate School Bond which is required for the school’s annual license renewal.
How Does the Real Estate School Bond Application Process Work With Jet?
Jet’s bond application takes only a few minutes to complete and can be done from the comfort of your home! Our online bond application asks for simple information such as the name of the institution and the school owner’s social security number. It is important to note that the NCREC requires the name of the school owner and the name of the school to be identical to the school license application and the bond form. Incorrect completion of these forms is the most common reason for licensure delays.
For an approved rate, a soft credit check will be required. Once you select the monthly or annual option and complete payment, Jet will file the original bond for you and send you a copy of the bond for your personal records and license application.
Does the Real Estate School Bond Expire?
Not with Jet! If you choose our monthly payment option, there is no need for a bond renewal as payments will continue to come out of your preferred account on a monthly basis. Plus, the bond will remain active for you to have on hand when your annual school license renewal occurs.
If you choose to make annual payments for the Real Estate School Bond, Jet will send you a renewal invoice prior to the bond’s expiration date. No extra paperwork is required and payment is all that is needed.
Can the Real Estate School Bond Be Cancelled?
Yes, you may cancel this bond at any time with Jet! The Education Division of the North Carolina Real Estate Commission may release you and the Surety (Jet) from liability within 30 days of the cancellation request.
If the monthly payment option was chosen, Jet will charge for that 30-day period due to the bond remaining active during that time. If the annual payment option was chosen, Jet will review the bond to see if there is any unused premium left on the bond and will return this amount to the real estate school owner.
