Texas Timeshare Escrow Bond

Texas Timeshare Escrow Surety Bond

The Texas Real Estate Commission requires that there be a method of financial assurance given to a purchaser of a timeshare plan in case the developer of a timeshare plan does not give a refund when needed. One way to fulfill this requirement is the Timeshare Escrow Surety Bond, held in an amount equal to the payment received for the timeshare transaction.

It is common for timeshare developers to commit the payment received to a trust or escrow account. The Timeshare Escrow Bond is only required when the developer chooses to forego setting up an account. If the purchaser decides to use their right to cancel the purchase within six days, the developer is obligated to return any funds that were paid. 

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This Commission also may require a Timeshare Construction Bond to guarantee that developers will complete construction of the time-sharing property, or provide a refund if the construction is not done according to plan.

What Is the Cost of the Texas Timeshare Escrow Bond?

You can purchase your Timeshare Escrow Bond or Timeshare Construction Bond for as low as $10 a month or $100 for one year, depending on the bond limit and a credit check. See the chart below to see what a preferred credit applicant would be quoted at different limits. 

Bond LimitMonthlyAnnual
$10,000$10$10
$25,000$25$250
$50,000$50$500
Texas Timeshare Escrow Surety Bond Rates

The bond limit for the Timeshare Escrow Bond is based directly on the amount that the purchaser has already paid for the timeshare and must be equal to that amount. The limit for the Timeshare Construction Bond will be assigned by the Real Estate Commission. 

The Timeshare Escrow Bond Process With Jet

To apply for a Texas Timeshare Escrow Bond, click the link above! Our application only takes a few minutes and we only ask for the necessary information, like general business information and a social security number that is used for the soft credit check. 

Depending on the bond limit, your application will go one of two ways: 

  1. If your bond limit is under $15,000, you will receive an approved quote right away. You can purchase your bond immediately and get started filing.
  2. If your bond limit is over $15,000, your application will be submitted for review by a Jet underwriter. We may need additional information, such as financial statements. After your application has been reviewed, you will receive an email with your approved quote. You can click the link to purchase your bond right away.

After your payment goes through, Jet will get your Timeshare Escrow Bond ready. We can mail the bond directly to you to sign and submit to the Texas Real Estate Commission. You must send the original bond to: 

Texas Real Estate Commission
PO Box 12188
Austin, TX 78711-2188

The bond must be renewed annually; Jet will send you a renewal notice when your term is ending. All you need to do is fill out the mailed portion and send it back or just click the link in the emailed notice to submit payment for the new term. Jet will take care of the rest. Monthly payment plans don’t need to take further action as each payment made keeps the bond active.

If you no longer need your Timeshare Escrow Surety Bond, send Jet an email at [email protected]. We will send notice to the Real Estate Commission to start the 30-day cancellation period. After the Commission finalizes the cancellation, Jet will cancel any monthly payments and, for annual payments, calculate the remaining time left on the term into a refund. 

The Texas Timeshare Construction Bond Process

In many ways, the Construction Bond is similar to the Escrow Bond since they both need to be held by a timeshare developer. The original bond must be mailed in to the same address. There is also a 30-day cancellation period, which can result in a refund from Jet. And, renewing the bond is an important part of staying in business as a timeshare developer. 

The biggest difference between the bonds is the application process, and it’s not much of a difference. You will still need to add in information in each part of Jet’s application and, once finished, your application will be submitted for review by an underwriter. Additional information like financial statements, project descriptions, and details regarding the trust account used to hold deposits for the timeshare.

Once all the information has been reviewed, you will be sent an email with your approved quote. Just click the link to get started!

How Does a Timeshare Developer Avoid Bond Claims?

The main purpose of the Timeshare Escrow Bond is to provide a way for purchasers to get their money back if they decide to back out of the timeshare sale within the rescission period. If the developer returns the money within a reasonable amount of time, there is no cause for a claim on the bond. If they withhold the money, then a claim would be filed to seek reimbursement. Similarly, the Timeshare Construction Bond is used to make sure that a developer will finish construction of the timeshare property according to the plan; if the construction does not meet the specifications of the plan, the developer must refund the deposit to the purchaser. Failure to finish construction or refund the money would lead to a claim on the bond. 

If you receive a claim, Jet would look into the accusation to make sure that it is not false and see if there is a way to complete the return of payment before the claim escalates. If you still refuse to or are unable to refund the payment, Jet will be obligated to reimburse the purchaser through the bond on your behalf. You are still responsible for paying Jet back in the amount of the claim. 

The Timeshare Construction Bond is open to receive claims up to two years after the bond ends, given that the cause for the claim occurred during the time the bond was active.

Do Timeshare Developers Need Both Bonds in Texas?

Yes! A timeshare developer needs to have both the Timeshare Escrow Bond and the Timeshare Construction Bond. The Escrow Bond is required for any developer looking to sell timeshare plans; the Construction Bond is required when the construction of a timeshare property will not be completed before the end of the rescission period (six days after a sale).

Texas Timeshare Escrow Surety 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: