Those engaged in the development of lots or parcels of subdivided lands for sale to the public or contractors are required under the California Business and Professions Code section 11013.2.4 to file a California DRE Blanket Escrow Depository Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The California DRE Blanket Escrow Depository Bond holds you accountable for your business decisions.
By possessing a California DRE Blanket Escrow Depository Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.