Real estate school bond
A bond is required for all real estate schools and instructors by the Hawaii Department of Commerce and Consumer Affairs. The bond amount varies according to the scope of the real estate service. It is the maximum number of students permitted in a classroom, multiplied by the advance deposit charged per student, multiplied by the maximum number of courses held at any one time during the school’s first year.
In no case can the amount be less than $2,000. This bond remains valid until December 31 of even-numbered years (or until the certificate of registration expires), at which you must renew the bond to continue running your business legally.
Since the bond amount varies, we must implement an underwriting process to determine your bond rate. This involves a review of your credit report; the higher your credit score, the lower the rate you pay. Worried about bad credit? We have a bad credit bonding program that enables us to approve 99% of our applicants.
Why this bond
Real estate school bonds help protect real estate brokers and salespersons from fraudulent or unlawful business services on behalf of their instructors. Should the school or instructor violate a provision outlined in Chapter 467 of the Hawaii Revised Statutes or Title 16, Chapter 99 of the Hawaii Administrative Rules, then this bond can be subject to a valid claim filed by the obligee. Violations include:
- Operating without a valid certificate of registration
- Failing to provide the required continuing education hours
- Offering courses that do not adhere to the commission-approved curriculum
- certifying students that have not satisfied the required number of hours or passed the final examination
- Failing to be available for student assistance
- And more
In the event of a valid claim, the surety must cover the losses and damages incurred upon the obligee. The principal then has to repay the principal the same amount of money in a timely manner.
SuretyBonds.com works hard to ensure customer satisfaction. Apply for a free bond quote online and one of our experts will cater to your personal bonding needs!
Become a real estate instructor
The Hawaii Department of Commerce and Consumer Affairs obligates prelicense real estate instructors to file a surety bond before they can provide legal real estate instruction. The bond amount varies according to the scope of the real estate service, but cannot be less than $2,000.
This is a biennial bond, meaning that bondholders must renew this bond before December 31 of even-numbered years if they wish to continue in their profession. In the event of cancellation, the surety must provide the Department of Commerce and Consumer Affairs a 30-day written notice of cancellation. During these 30 days, the surety remains liable for any claims filed against the bond.
What are the licensing requirements?
All prelicense real estate instructors and schools must obtain certificates of registration before commencing operations. The requirements outlined in the application include:
- Applicant’s name, address, phone number & email
- Name of school
- Professional qualifications
- Teaching qualifications
- Prior real estate teaching experience (within 3 years of submitting application)
- License information (real estate, teacher, other)
Remember, you need a surety bond in addition to a certificate of registration. Submit an online application and a surety specialist will contact you with a free quote for your bond!
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