You can learn how to get a surety bond in Texas by following three direct steps: identify the exact bond your city or state agency requires, gather the documents they request, and apply through a surety bond company that issues the bond after reviewing your information. Once approved, you file the bond with the agency so you can move forward with your license, permit, or legal process.
What a Surety Bond Does in Texas
A surety bond creates financial accountability. The principal agrees to complete a task, fulfill a contract, or comply with a law. If the principal does not comply, the surety covers the loss and later requests reimbursement.
Because Texas has local regulations rather than a single statewide system, cities like Houston, Dallas, and San Antonio use different bond rules. This underscores the importance of understanding the requirements for a surety bond in Texas before applying.
These bonds appear in many areas: construction projects, auto dealerships, court cases, public offices, and situations where ownership documents are missing, such as bonded titles.
Each bond serves one function—ensuring that the applicant follows the rules set by the obligee.
Steps on How to Get a Surety Bond in Texas
1. Identify the Bond You Need
The first step is knowing the exact bond required. Some of the most common include:
- License and permit bonds for regulated professions.
- Court bonds for appeals, probate cases, or guardianships.
- Public officials' bonds for handling public funds.
- Construction guarantees, such as a Performance Bond.
- Bonded title surety bonds for vehicles without valid title documents.
Each bond protects a different obligation, so confirming requirements with your local authority prevents delays.
2. Check Your Eligibility
Once you know the type of bond, you need to verify eligibility. Surety underwriters review credit history, financial stability, and documentation related to the obligation.
Courts may require specific forms, and municipalities may ask for insurance certificates or proof of registration.
These steps help determine the premium you will pay and the conditions of the bond.
3. Gather the Required Documents
Applicants prepare documents such as:
- A completed bond application.
- Identification and contact information.
- Financial records, if required.
- Contract or permit details.
- Supporting documents for bonded titles, including proof of ownership and Form VTR-130-SOF.
4. Apply Through a Surety Bond Company
After collecting documents, you submit your application to a surety bond company.
The surety reviews your information, determines your premium, and issues the bond once payment is complete.
Premiums usually range from 1% to 5% of the bond amount, depending on credit and risk factors. Applicants with limited credit may pay more or provide collateral.
5. File the Bond With the Correct Authority
The next step is to file the bond with the entity that requires it. Filing locations vary:
- TxDMV for bonded titles or dealer bonds.
- Local courts for judicial bonds.
- City permitting offices for contractor registrations.
- State agencies for regulated trades.
Submitting the bond correctly ensures that you can move forward with a license, permit, or legal process.
6. Maintain Compliance After Issuance
Once you receive a bond, you must follow all ongoing requirements. Contractors renew bonds and insurance regularly.
Bonded-title holders maintain their bond for three years in case a previous owner files a valid claim. Courts may request updated documents if case conditions change.
Staying compliant protects your eligibility for future permits, registrations, or contracts.
Why Understanding the Process Matters
Learning how to get a surety bond in Texas helps applicants stay aligned with local and state rules.
Because requirements vary, people must confirm details with their city office, court clerk, or permitting agency. The correct bond supports legal compliance, reduces financial risk, and provides assurance to the obligee.
By following the steps, preparing the required documents, and working with a reputable company, individuals and businesses can complete the bonding process smoothly.
In Avla, we help you understand every step of the bonding process in Texas. We guide you through the requirements for your Contract Bond, review the details with you, and make sure you file your bond correctly and on time.
