The California Department of Real Estate commonly goes by the acronym DRE. The DRE exists to protect the general public in all matters of real estate, including licensure, regulation, education, and enforcement. They grant licenses to real estate brokers and salespersons. Before a real estate license is issued, a person must complete all education, experience, and formalities. One of these formalities is being properly bonded with the correct surety bond.
A surety bond is used by the California Department of Real Estate to ensure its agents and brokers obey the laws and regulations that fall under their license. California does not require real estate agents to have a surety bond for a real estate license, but there are certain instances where the DRE does require a surety bond.
Common surety bonds that are required by the California Department of Real Estate include:
California Prepaid Rental Listing Service Surety Bond
Businesses that charge a fee to supply prospective tenants with rental property listings are considered a “Prepaid Rental Listing Service”. If a company or entity wishes to engage in this business, they must have an individual license. This license requires the applicant to have a California Prepaid Rental Listing Service Surety Bond. The bond amount needs to be at least $10,000 and have a surety bond for every location that the business operates. The bond protects the client against any misrepresentation or fraud.