What is a surety bond in real estate, and why is it NOT insurance?

Most people misunderstand how surety bonds actually work and that confusion can lead to costly mistakes in real estate deals.

In this video, we break down surety bonds in real estate in simple terms. You’ll learn how surety bonds work, who they protect, and why they’re required for real estate developers, property managers, and licensed professionals. We also explain the key difference between surety bonds vs insurance, a distinction most people get wrong.

If you’ve ever wondered how property owners stay protected when a developer walks away from a project or why states require surety bonds for real estate licensing, this video will give you clarity.

 What You’ll Learn in This Video

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  What a surety bond is in real estate

  
  


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  Why surety bonds are not insurance

  
  


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  The 3 parties in a surety bond (principal, obligee, surety)

  
  


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  How surety bonds protect property owners and government agencies

  
  


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  Common real estate surety bonds (performance, licensing, property management)

  
  


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  What happens when a surety bond is claimed

  
  

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