That's only if you are forming your own residential brokerage company and are therefore required to get bonded.

Then the investor must file a written claim with the surety company who issued the bond required by the ROC.

The contract strengthens your position as it's a stated transaction, doesn't involve his management except per the contract terms.

@Howard Edson Yes, have to have the bond and insurance to get contractors license.

I've fired two plumbers, three crews of tile guys, my GC took off in the middle of the reno, others have done shoddy work that needed to be repaired (so I paid twice), etc.My advice-- you'll pay a little (maybe a lot) more, but hire contractors / trades guys from large, reputable companies that are fully insured, bonded, well-reviewed on Google/Yelp/BBB/Angie's List.

Some things to consider, check with BBB, web search for complaints and reputation (google), see and verify business insurance, employees bonded and insured, do they sub out the work or do they hire employees ?

And see if you can strengthen the relationship with the seller (your partner) by having open professional conversations and trying to solve any problems he has (taxes, access to cash, reinvestment of the proceeds, etc.). 

Deposits from the tenant.Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution or a trust institution authorized to do business in this State, or the landlord may, at the landlord's option, furnish a bond from an insurance company licensed to do business in North Carolina.

I'm looking to transition from stocks and bonds into real estate on some level.  

The drawback is of course the dollar, which is always strengthening and cause deprecation.