What is the minimum amount for a fidelity bond required by a condo managing agent?

What is the minimum amount for a fidelity bond required by a condo managing agent?

• A. $10,000
• B. $20,000
• C. $50,000
• D. $100,000

Answer: (B)

The minimum amount for a fidelity bond required by a condominium managing agent is indeed $20,000. This requirement is in place to protect the condominium association from potential losses caused by dishonest acts of the managing agent or their employees. A fidelity bond acts as a safeguard for the association's funds and assets, offering assurance that the managing agent has financial protection in case of theft or fraud. Setting the bond at a minimum of $20,000 reflects a balance between providing adequate coverage while also being manageable for many associations. It helps ensure that there is some level of financial security in place, ultimately serving the interests of the condominium owners and maintaining the integrity of the management process.

The minimum amount for a fidelity bond required by a condominium managing agent is indeed $20,000. This requirement is in place to protect the condominium association from potential losses caused by dishonest acts of the managing agent or their employees.

A fidelity bond acts as a safeguard for the association's funds and assets, offering assurance that the managing agent has financial protection in case of theft or fraud. Setting the bond at a minimum of $20,000 reflects a balance between providing adequate coverage while also being manageable for many associations. It helps ensure that there is some level of financial security in place, ultimately serving the interests of the condominium owners and maintaining the integrity of the management process.