Alabama Real Estate Private School Bond Guide
In Alabama, most real estate schools need a surety bond for state licensing.
Bond Overview
- Purpose: To protect prepaid tuition funds and ensure compliance with regulations
- Who Needs It: Private real estate schools in Alabama
- Regulating Body: The Alabama Real Estate Commission
- Required Coverage: $20,000
- Premium Rate: Credit-based, starting at $200
Keep scrolling to learn more about the bonding process.
What Is an Alabama Real Estate Private School Bond?
This bond ensures Alabama private real estate schools uphold state regulations. It also protects prepaid tuition funds.
The Alabama Real Estate Commission (AREC) requires this type of license and permit bond for state licensing.
How Much Do Private Real Estate School Bonds Cost in Alabama?
Alabama real estate private school bond premiums cost 1–10% of the bond amount, based on credit score. Qualified applicants often pay just $200 for the required $20,000 coverage.
Apply for your free, personalized quote below.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Real Estate School Bond Work?
An Alabama real estate school bond is a legal contract between three parties:
- Principal: The real estate school purchasing the bond
- Obligee: The Alabama Real Estate Commission requiring the bond
- Surety: The provider issuing the bond
You, as the principal, promise to uphold the provisions of AL Code § 34-27-6.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Real Estate School Bond?
In Alabama, all private schools offering prelicense, post-license and continuing education courses for real estate professionals must file a $20,000 surety bond.
Schools only offering continuing education are exempt from the bond requirement.
How Do I Get a Private Real Estate School Bond in Alabama?
SuretyBonds.com provides the fastest and easiest way to get a private real estate school bond. Just follow these simple steps:
- Apply Online: Fill out the quote request form on this page
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Download your official bond form directly from your email
Upon receipt, sign and file the bond documentation with the AREC.
How Fast Can I Get My Bond?
We process most quote requests in one business day or less. Once you pay the premium, we’ll issue your official bond form via email in minutes.
Apply now to start the bonding process today.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will likely increase your premium rate.
Learn more about how credit may impact your cost on our Surety Bond Cost FAQ page.
How Do I Renew My Real Estate School Bond?
Alabama real estate school bonds expire annually.
When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
Once you pay the premium, we’ll issue a continuation certificate to keep your bond active for another year. Sign and file the certificate with the AREC.
How to Open a Private Real Estate School in Alabama
The Alabama Real Estate Commission regulates two types of real estate schools:
- Approved schools offering continuing education courses only
- Licensed schools offering prelicense, post license and continuing education courses
The renewal period for all schools, administrators, instructors and courses is June 15 through September 30 of odd-numbered years.
Administrator Application
All schools must have a licensed administrator who will oversee the school’s actions.
If you don’t already hold an Alabama real estate license, you must first register for an ID number from the AREC. Then, complete the administrator application.
You will receive an email from the AREC with instructions for taking the administrator exam. You must pass the exam before you can begin offering courses.
Approved School Process
If your school plans to offer only continuing education courses, you must apply for AREC approval.
First, submit an administrator application. Once approved, complete the online application using your administrator login.
There is no processing fee. You will receive your approval number via email.
Licensed School Process
All schools intending to offer prelicense, post license and continuing education courses must be licensed with the AREC. To apply, follow these four steps:
- Become an Administrator: Complete the administrator application
- Purchase a Surety Bond: Once approved as an administrator, submit your surety bond form
- Apply Online: After receiving confirmation from the AREC, complete the license application using your administrator login
- Pay Fee: Your licensing fee will vary based on when you apply ($500 if during the first year of the approval period, $250 if during the second)
The AREC will then issue your license number.
