Texas Residential Service Company Bond

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What is a Texas Residential Service Company Bond?

The Texas Residential Service Company Bond is required by the State of Texas, Texas Real Estate Commission in compliance with Article 6573a-1, V.T.C.S. The amount of the bond is set at $25,000. A residential company, or home warranty companies, sells home owners and buyers a service contract for a certain period of time to maintain, repair, or replace all or any part of a structural component, an appliance, or an electrical, plumbing, heating, cooling, or air-conditioning system of a residential property. All who wish to be in this business must be licensed by the state. 

Additional RequirementsTexas Residential Service Company Bond

Before you apply for the service bond license, you submit the following;

  • A copy your companies organizational documents such as articles of incorporation, articles of organization, articles of association, partnership agreement. Management agreement, or trust agreement, including all amendments.
  • A copy of company bylaws, rules, or other similar documents that regulate the conduct of your company’s internal affairs.
  • The name, address, and official position of each person who will be responsible for the conduct of your company’s affairs, including:

    • Each member of your board of directors, board of trustees, the executive committee, or other governing bodies or committee of your company.
    • Your company’s principal officer. If the company is a corporation and each partner or member of your company is a partnership or association.
  • Financial statement 
  • Description of your company’s proposed method of marketing for a residential service contract;
  • A statement regarding your company’s sources of working capital and any other funding sources;
  • If your company is not domiciled or qualified to do business in Texas, you will need to complete a Consent to Service of Process. That appoints a Executive Director of the Texas Real Estate Commission as your true and lawful attorney. For receipt of legal service process in any legal action brought against your company in Texas.
  • A Copy of the residential service contract(s) your company plans to offer. A summary of the proposed coverage, and any available promotional materials. Also a copy of the schedule of charges associated with each contract your company plans to offer. As well as justification for the rates you will charge your customers. All discounts you plan to offer, and a breakdown of projected costs (expenses) for the rates, including a profit projection.

How do I obtain a Texas Residential Service Company Bond?

We offer the lowest rates in the market today through our partnership with over a dozen A-rated surety markets. With 15 years of experience in the business (we were established in 2003), Surety1 has come up with a fast and friendly way of applying for the bond. 

All you need to do is complete the online application form and one of our licensed agents will contact you for the additional steps. Once you pay the bond premium and sign the necessary paperwork, we will you send you the bond through USPS Priority Mail. You. May also choose to receive it through overnight delivery for an additional cost. Surety1 is licensed in all 50 states and continues to maintain an A+ rating with the Better Business Bureau. for our excellence and reliability or service.


Find the surety bond that you need to get the jobs you deserve.

Contact Surety1 today and get started with a bond application to help your business thrive.

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