Texas Escrow Agent Bond
In Texas, an escrow officer is not bonded as an individual. The title insurance agent or direct operation that appoints you files a single Escrow Officers Schedule Bond — TDI form FINT123 — that lists every officer at the agency. The Texas Department of Insurance is the obligee, the bond is sized per officer, and it is what makes your appointment lawful in the first place.
That schedule structure is what trips people up: the amount is $5,000 or $10,000 per officer, capped at $50,000 for the whole agency, and it is a different filing from the agency's own title insurance license bond, TDI form FINT122, which many agencies also carry. See our title agency bonds page for how agency-level bonding works. Below: exactly who files what, how TDI sets the number, and what happens when an officer moves agencies mid-term.
The bond your title agency files — not you personally
Every other state on our escrow agent bonds hub bonds the escrow business. Texas is different: it licenses escrow officers as individuals, then secures them through the agency that employs them. The mechanics matter because they decide who buys, files, and amends the bond.
One bond, a schedule of officers
The agency files one FINT123 bond and attaches a schedule naming each covered escrow officer. Hire a new officer, and you amend the schedule; an officer leaves, and you remove them — the bond itself stays continuous. There is no separate certificate per person.
Four ways to prove the requirement
For the escrow officer schedule itself, TDI accepts more than a bond: the FINT123 surety bond, a TDI cash receipt, approved securities, or an irrevocable letter of credit all satisfy the requirement. (The agency's separate FINT122 bond is its own instrument and does not substitute for FINT123 — more on that below.) Most agencies choose the surety bond and keep their capital working — more on that trade-off below.
How Texas sizes the bond: $5,000, $10,000, and the $50,000 ceiling
This is the number your surety writes the bond for. Texas fixes it per officer by residency, then caps the aggregate — so unlike a flat license bond, your required amount changes as you add or drop officers, until you hit the ceiling.
How the Texas escrow officers schedule bond is sized
Priced per officer on the schedule, then capped for the whole agency.
Texas-resident officer
$5,000
For each escrow officer who is a bona fide Texas resident.
Multiplied across every in-state officer on the schedule.
Adjacent-state officer
$10,000
For each officer who is a bona fide resident of LA, NM, AR, or OK.
Double the in-state figure, per adjacent-state officer.
Aggregate ceiling
$50,000
Maximum for the entire schedule, however many officers you cover.
Reached at 10 Texas-resident (or 5 adjacent-state) officers.
Tex. Ins. Code § 2652.103; TDI Title Insurance Basic Manual, Section VI (L-2/L-3)
Official Texas Requirements
"$5,000 for each individual who is a bona fide Texas resident; $10,000 for each individual who is a bona fide resident of a state adjacent to Texas; the maximum aggregate bond or deposit is $50,000."Texas Department of Insurance — Title Insurance Basic Manual, Section VI (L-2/L-3) • Tex. Ins. Code § 2652.103
Worked example: an agency with six Texas-resident officers files a $30,000 schedule bond (6 × $5,000). Add a seventh Texas-resident officer and it becomes $35,000; the amount only stops climbing at the $50,000 aggregate, reached at ten Texas-resident officers (or five adjacent-state officers). The premium you pay a surety is a fraction of that penal sum and depends on underwriting — see how surety bond cost works.
Two different Texas bonds — and why agencies file both
The reason the same page online calls this a “FINT123” in one place and a “FINT132” in another is that people conflate three separate TDI documents. Here is the clean version:
| TDI form | What it is | Who it covers |
|---|---|---|
| FINT123 | Escrow Officers Schedule Bond | The individual escrow officers, by schedule |
| FINT122 | Title Insurance Agent / Direct Operation Bond | The agency's own licensing obligations |
| FINT132 | Application for Escrow Officer License | Not a bond — the officer's license application |
An agency that both holds a title license and employs escrow officers files FINT122 for itself and FINT123 for its officers — two distinct obligations, both satisfying the same Subchapter C bond-and- deposit rule. If your operation only does escrow inside a title agency, the schedule bond is your piece. For how agency-level title bonding works across states, including Texas, see our title agency bonds page — request a quote and we'll confirm whether your operation needs FINT122, FINT123, or both.
What the bond actually answers for
The FINT123 bond form names its own triggers. It obligates the surety to pay TDI for pecuniary loss caused by a covered officer's conduct — the language is specific, and narrower than a general “anything goes wrong” guarantee:
Theft, embezzlement, or willful misapplication
The FINT123 bond obligates the surety to pay TDI for pecuniary loss caused by an escrow officer's fraud, dishonesty, forgery, theft, embezzlement, or willful misapplication of money. A shortage in the escrow trust account traced to a covered officer is the textbook claim.
Forged instruments or false disbursement
Forging a signature on a closing document, or releasing escrowed funds against a document the officer knew was false, is expressly within the bond's language. The loss to the harmed party — buyer, seller, or lender — is recoverable up to the officer's scheduled amount.
Dishonesty in handling closing funds
The bond reaches dishonest acts generally, not just outright theft — steering funds, concealing a shortage, or misusing a client's deposit all qualify. Because the obligee is TDI, the department can pursue the bond on behalf of the public.
The bond protects the public and TDI — not the officer or the agency. Anything the surety pays comes back to the indemnitors, and a substantiated misapplication is a license matter with the department at the same time. Reconcile the escrow account monthly; learn how escrow operators avoid bond claims and what a surety bond claim actually involves.
Need officers added to a schedule bond today?
Tell us your agency and officer count — we'll size the FINT123 and file it with TDI.
Getting licensed as a Texas escrow officer
The bond exists to back a license, so the two move together. Unlike many state credentials, there is no escrow officer exam — but there are residency limits and specific fees most write-ups skip:
Confirm you live in an eligible state
The license is open only to primary residents of Texas, Louisiana, New Mexico, Arkansas, or Oklahoma — the same adjacent states that set the $10,000 bond tier. No exam is required.
Complete fingerprinting
Fingerprints are captured through TDI's vendor and routed to the Texas Department of Public Safety for the background check before the license issues.
Get appointed by a sponsoring agency (FINT09)
A title agency or direct operation files the Escrow Officer Appointment, FINT09. Filed on its own — for example, adding an officer mid-term — it carries a $10 nonrefundable fee; TDI does not charge it separately when it is bundled with a first-time FINT132 application. The appointment is what puts you on that agency's schedule bond.
Apply for the license (FINT132)
Submit the Application for Escrow Officer License, FINT132, with a $35 nonrefundable fee through Sircon. The bond or an approved deposit must cover you before you act.
Procedure details come straight from TDI's escrow officer application page and the official FINT123 schedule bond form. Fees and forms change — confirm current versions before filing.
Renewals and continuing education most write-ups skip
Renewal timing and fees
- $35 nonrefundable renewal fee, filed online through Sircon
- $17.50 late fee if you renew after the expiration date
- A lapsed license means an officer who no longer belongs on the schedule bond
Continuing education
- 10 CE hours every two years, including 2 hours of ethics / consumer protection
- Finish by expiration — TDI suggests ~30 days early so providers can report hours
- No per-hour dollar fine — TDI simply won't renew the license until all CE hours are complete
None of this changes the bond form, but it keeps your officers eligible to be on it — a lapsed or CE-deficient officer left on an active schedule is exactly the kind of gap TDI and a surety underwriter both notice.
When an escrow officer changes agencies mid-term
Escrow officers move between title agencies constantly, and the schedule-bond model makes the handoff easy to get wrong. Because the bond belongs to the agency, it does not follow the officer out the door:
The old surety can terminate coverage on 30 days' notice
The FINT123 bond lets the surety end its liability as to any or all covered officers by giving 30 days' written notice to the agency and to TDI's Austin office. After that window, the old bond no longer answers for your acts.
The new agency must schedule you before you act
Your new employer files a fresh FINT09 appointment and adds you to its own schedule bond. Until that amendment is in place, you are an unbonded officer — and acting without the bond is itself a violation, not just a paperwork lag.
The practical rule: never close a file at a new agency until you confirm you are on its schedule bond. We handle the schedule amendment as part of moving your appointment.
The FINT123 bond vs. tying up cash with TDI
TDI lets an agency satisfy the schedule requirement four ways. For most title operations the surety bond wins on capital efficiency, but the alternatives are real and occasionally used:
Surety bond (FINT123)
One instrument covers every officer on the schedule and flexes as you appoint or drop them — no agency cash surrendered to TDI, and no re-issue when the roster changes.
Cash receipt or securities
A TDI cash deposit or approved securities ties up the entire security amount with the state for as long as you hold the license.
Irrevocable letter of credit
An LOC satisfies TDI but encumbers your bank line and carries its own fees — a poor trade when the bond premium is a fraction of the amount.
Bonds a Texas title-and-escrow operation stacks
Title and escrow operations rarely carry just one bond. Common companions:
FINT123 schedule-bond questions
Does the escrow officer or the title agency buy the Texas bond?
The title insurance agent or direct operation buys it — not the individual officer. Texas uses a "schedule bond": one bond, filed by the sponsoring agency on TDI form FINT123, that lists (schedules) every escrow officer the agency employs. When you add or drop an officer, the agency amends the schedule rather than issuing a brand-new bond per person. That is why a solo escrow officer cannot simply walk in and buy this bond alone — it rides on the agency that appoints them.
How much is the Texas escrow officers schedule bond?
The required penal sum is set per officer and then capped: $5,000 for each escrow officer who is a bona fide Texas resident, $10,000 for each officer who is a bona fide resident of a state adjacent to Texas, with the total for the entire schedule capped at $50,000 no matter how many officers you cover. So an agency with six Texas-resident officers needs a $30,000 bond; an agency with eleven Texas-resident officers still tops out at the $50,000 aggregate. This is the security amount required by the Texas Department of Insurance — your surety premium is quoted separately.
Is the FINT123 schedule bond the same as the FINT122 title agent bond?
No — and Texas title agencies routinely need both. FINT122 is the Texas Title Insurance Agent / Direct Operation Bond, which secures the agency's own licensing obligations. FINT123 is the Escrow Officers Schedule Bond, which secures the conduct of the individual escrow officers handling closings. TDI treats them as two separate proofs of the bond-and-deposit requirement, and an agency that both holds a title license and employs escrow officers files each one. Confusing the two form numbers is the single most common mistake we see on Texas filings.
What is the escrow officer license path, and is there an exam?
There is no exam. The Texas escrow officer license is open only to individuals whose primary residence is Texas, Louisiana, New Mexico, Arkansas, or Oklahoma. You complete fingerprinting through TDI's vendor (results routed to Texas DPS), your sponsoring agency files an Escrow Officer Appointment (FINT09 — a $10 nonrefundable fee when filed on its own, not charged separately when bundled with a first-time FINT132), and you submit the license application (FINT132) with a $35 nonrefundable fee through Sircon. The bond is what makes the appointment valid — an officer cannot lawfully act until the schedule bond or an approved deposit covers them.
What happens to my coverage if I change title agencies mid-term?
The schedule bond belongs to the agency, not to you, so it does not travel with you when you leave. Your former agency's surety can terminate its liability for you by giving 30 days' written notice to the agency and to TDI's Austin office, after which the bond no longer answers for your acts. Your new agency must add you to its own schedule bond before you resume acting as an escrow officer there. Treat the move as a bonding event: line up the new appointment (FINT09) and schedule amendment so there is no uncovered gap.
Do Texas escrow officers have continuing education?
Yes. Escrow officers complete 10 hours of continuing education every two years, including at least 2 hours in ethics or consumer protection, finished by the license expiration date. TDI recommends wrapping up about 30 days early so your provider has time to report the hours. Renewal is $35 online through Sircon, with a $17.50 late fee if you miss the date. TDI does not charge escrow officers a per-hour CE fine — it simply will not renew the license until the hours are complete, which is its own problem if closings are scheduled. None of this touches the bond directly, but a lapsed license means an officer who should not be on the agency's schedule.
All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A-minimum rated surety carriers serving all 50 states.
General information, not legal or underwriting advice. Texas escrow officer licensing, bond amounts, forms, and fees are set by the Texas Department of Insurance under Chapter 2652 of the Insurance Code and the Title Insurance Basic Manual, and change over time. Confirm current requirements with TDI, and request a quote for your specific schedule bond and amount.
Bond your Texas escrow officers
Give us your agency, how many officers, and where they live — we'll size the FINT123 schedule bond to the exact TDI requirement and file it. New appointments and mid-term schedule changes welcome.
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