Auctioneer or Apprentice License ($10,000) Bond - Statewide in Alabama

Brief Summary

The $10,000 bond is the same amount for a full auctioneer and for an apprentice, and the Alabama State Board of Auctioneers will not issue either license until it is on file. Posting a surety bond keeps $10,000 of your own cash out of a board deposit, and the executed form mails with your application and the $200 or $100 license fee.

Alabama requires every applicant for an auctioneer license or an apprentice auctioneer license to file a $10,000 bond payable to the Alabama State Board of Auctioneers before the license is issued, under Code of Alabama 34-4-24. It can be a surety bond from a company authorized in Alabama or a cash bond, and it stays in place for as long as you hold the license. All Alabama auctioneer licenses expire September 30 each year.

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How to Apply for a Auctioneer or Apprentice License ($10,000) Bond:

• Decide which license you are applying for, auctioneer or apprentice. The bond is $10,000 for both.
• Legal name exactly as it will appear on the board application, and the sponsoring auctioneer's name if you are an apprentice.
• Owner or applicant name, address and Social Security number for the surety's credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed bond on the board's approved form.
• Mail the bond with the application, the $200 auctioneer or $100 apprentice fee and the $20 criminal history fee to the Alabama State Board of Auctioneers. The board does not accept applications by email or fax.
• Keep the bond in force through every September 30 renewal.

Detailed Information About the Alabama Auctioneer or Apprentice License ($10,000) Bond:

The amount does not change with license type

Code of Alabama 34-4-24 says each application for an auctioneer's or apprentice auctioneer's license shall be accompanied by a bond of $10,000, payable to the board, in a form the board approves. There is no tier for apprentices and no larger figure for auction companies on this statute. The board will not issue a license until the bond is filed.

The statute gives two ways to satisfy it: a cash bond, or a surety bond executed by a surety company authorized to do business in Alabama. Almost everyone chooses the surety bond because the alternative means handing the board $10,000 that sits idle for the life of the license.

What the bond guarantees

The bond is conditioned on the licensee conducting business in accordance with the provisions and intent of Chapter 4 of Title 34, the Alabama auction law, and the board's rules. A consignor or buyer harmed by a violation can look to the bond for recovery, and the surety will then look to you for reimbursement. It is a guarantee of your conduct, not insurance that protects you.

Term, fees and renewal

The board treats the bond as continuous. It is a condition of initial licensure and must be maintained the whole time you are licensed. All licenses expire on September 30 of each year. The board's posted fees are $200 for an auctioneer license and renewal, $100 for an apprentice license and renewal, $150 for a reciprocal license, $100 for the exam paid to the vendor, and $20 for the criminal history check. Late renewal is allowed for 60 days after expiration with a $25 penalty for apprentices and $50 for auctioneers.

Apprentices and nonresidents

An apprentice must be at least 18, work under the supervision of a licensed auctioneer at all times, and have a sponsor who has been licensed at least two years, is in good standing and lives in the same state. Code of Alabama 34-4-21 sets the training path, either 85 classroom hours plus one year of supervised experience or two years of supervised experience. None of that education replaces the bond.

Nonresidents licensed in another state can apply for a reciprocal license with a certificate of good standing from their home state. A nonresident holding a single auction license under 34-4-21 posts a separate $10,000 bond under that section. The listing on this page is the standard auctioneer and apprentice bond under 34-4-24.

Who does not need a license or a bond

Code of Alabama 34-4-3 exempts receivers, trustees in bankruptcy, guardians, administrators, executors and anyone acting under a court order, sales under a trust agreement, deed of trust or will, and auctions conducted by or under the direction of a public authority or pursuant to a judicial order or decree.

Eligibility and Requirements for a Alabama Auctioneer or Apprentice License ($10,000) Bond:

• Bond amount of exactly $10,000 under Code of Alabama 34-4-24.
• Alabama State Board of Auctioneers named as obligee, with the bond made payable to the board.
• Surety company authorized to do business in Alabama, or a cash bond deposited with the board instead.
• Bond written on a form approved by the board. Confirm the current form with the board before the bond is issued.
• Continuous bond, maintained for the full time you are licensed.
• Applicant credit review. At this bond size credit mostly shapes the rate, not eligibility.

Alabama Auctioneer or Apprentice License ($10,000) Bond FAQs:

Official and Additional Resources for the Alabama Auctioneer or Apprentice License ($10,000) Bond: