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By Lisa A. Tyler
National Escrow Administrator

Surety bonds — once written — are very broad documents. The bond guarantees that promises made will be kept. If the principal defaults, the surety must meet the guarantee and then subrogate against the principal through the indemnity agreement. Unlike insurance where losses are anticipated, in theory there should be no losses under surety bonds. When a loan has been fully paid, but the security instrument such as the deed of trust or mortgage has not been formally released of public record, the borrower can purchase a surety bond to bond around the loan proving it was fully paid. This is done frequently by property owners selling or encumbering property within a certain time frame with old loans still reflected in the public records. Read "BONDING around a lien" to discover the lengths one borrower was willing to go to in order to close a fraudulent loan.

Chicago Title in Las Vegas, opened an all cash sale transaction in September 2016. The transaction was scheduled to close in January 2017. The buyer deposited over 10% as an earnest money deposit into escrow. Suddenly, the terms changed in November and an additional deposit was due, or was it? Read "ADDITIONAL $150,200 deposit due" for more details.

Being commissioned as a notary is an honor and responsibility. Each commissioned notary is personally liable for knowing the statutes and rules which govern the acts of the notary public. Failure to comply can result in suspension or revocation of one's commission. Read "YOUR notary commission, your responsibility" for more details.

Be sure to answer the monthly notary question to make certain you understand the tips shared to increase your "notary know how!"

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