A Motor Vehicle Salesperson Surety Bond is issued in the state of Colorado as a protective measure for individuals doing business with said salesperson. The bond is a guarantee that the licensed salesperson will comply with Article 12, Article 6 parts 1+5 of the Colorado Revised Statutes. In the event that the salesperson violates this guarantee, consumers are protected against any financial losses due to the violation by way of fraud or misrepresentation.
This bond is required for anyone applying for the following licenses:
- Motor Vehicle and Powersports Vehicle Salesperson
- Motor Vehicle Salesperson
- Powersports Vehicle Salesperson
The bond amount is set at $15,000, but luckily you are only required to pay a premium. There is no required underwriting for this bond, meaning that South Coast Surety issues them for a cost of $100/year. Your bond is continuous until you cancel it, and will not have an effective or expiration date listed. You must carry this bond for the entire time you have an active license from the list above.
The obligee for your Colorado Motor Vehicle Salesperson Bond is:
Colorado Department of Revenue
Enforcement Division
Visit their site here
Bonds are issued in the order that we receive them, but after you submit your application and payment, you can expect your bond to be issued within 1-3 days. If you have any questions about your application while you are completing it, don’t hesitate to contact a South Coast Surety agent in order to get your application submitted and processed without delay.
In the event of a claim against your bond, your surety will compensate the damaged party, at which point you will be obligated to repay your surety the full amount, as well as any associated fees. In addition, your surety may revoke your bond. If your bond is revoked, you will be unable to continue operating under your license until you are able to obtain a new bond. It is important that you understand the terms of your bond, as well as all laws and regulations pertaining to the sales of motor vehicles and power sports, to avoid any issues that may result in interruptions to your business activities. Be sure that all employees operating under this license understand and agree to comply with these laws and regulations as well, because you are liable for any fraudulent activities or bond violations that occur under the bond.
A history of revoked surety bonds will cause issues for any future applications, so in addition to problems with your current licensure, violations will follow you in the future. Again, avoiding claims is absolutely imperative if you want to continue operation normally. If you have a claim filed against your bond at any point, contact your surety bond agent immediately to begin working on a solution that will avoid any long-term issues.
This bond acts as a measure of financial protection for your customers in the event of any fraud or misrepresentation that may take place during the course of a transaction. In the event that you are found to have violated any laws, regulations, or provisions outlined by your bond, your surety will issue payment for any damages, at which point you will be obligated to repay the full amount to your surety.
- Motor Vehicle Salesperson
- Motor Vehicle and Powersports Vehicle Salesperson
- Powersports Vehicle Salesperson
If you are applying or renewing any of the aforementioned licenses, you are required to carry a Motor Vehicle Salesperson Bond as well.
If you would prefer, you can download the .pdf version of the application and email it to apps@www.southcoastsurety.com or fax your completed document to (949)361-9926. If you choose to email or fax your application, please submit a payment form as well. Once we receive your application and payment, we will file your bond.