In Alabama, auctioneers are licensed and bonded through the State Board of Auctioneers. Keep reading to find out how to get a license and bond.
Alabama auctioneer licensing
Alabama auctioneers begin by serving as apprentices to an auctioneer who has been licensed for at least two years, and they serve as apprentices for one or two years. They then apply for a resident auctioneer’s license. Applicants can also be licensed in Alabama as non-resident, non-reciprocal auctioneers or as reciprocal auctioneers, meaning they are already licensed in another state.
All applicants submit some of the same information to the Board, including apprentices:
- ASBA Form 1�Statement to the Board
- ASBA Form 2�General Information
- ASBA Form 3�Qualifying Questionnaire
- ASBA Form 4�Affidavit of Endorsement (two)
- Proof of Citizenship
- Request for criminal history records plus $20 fee
- $10,000 surety bond and power of attorney
Applicants who completed a one-year apprenticeship need to include proof of five auctions and an auction school diploma, while those who completed a two-year apprenticeship need proof of ten auctions, in the form of ads or canceled checks.�The license fee for resident and non-resident Alabama auctioneers is $200, and apprentice applicants pay $100. Neither the surety bond nor the license fee need be submitted until after the applicant has passed the license exam, which includes a $100 fee.
In addition to the listed information, apprentice applicants need their sponsoring auctioneer’s affidavits on ASBA Forms 6A and 6B. Resident auctioneer applicants need proof of their apprenticeship and a letter of recommendation from a sponsor. Reciprocal auctioneers pay a license fee based on the state their license is coming from, and they need to submit proof of residence in their home state and complete ASBA Form 7. Reciprocal licensees do not need to take the exam. Non-resident, non-reciprocal applicants reside in states that don’t participate in license reciprocity with Alabama, and they pay an additional processing fee of $50 and complete ASBA Form 7.
The Alabama auctioneer surety bond is licensees’ promise to follow the provisions of the Auctioneer License Act. The bond protects consumers from financial loss as a result of an auctioneer’s illegal practices, and protects the state from liability in the same case. Claims paid out from a surety bond must be reimbursed in full by the bondholder, up to the bond’s full amount.
Alabama auctioneers’ licenses need to be renewed annually and include a $200 renewal fee, or $150 for apprenticeship licenses. The information above is not exhaustive and Alabama auctioneer applicants should consult the Board’s website and FAQs.