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Alabama Private Real Estate School Bond
Real estate education institutions that wish to offer prelicense, post license, and continuing education (CE) courses to the public are first required to be approved and licensed by the Alabama Real Estate Commission (AREC). The $20,000 Private School Performance Bond (Real Estate), more commonly referred to as the Private Real Estate School Bond, is required as a step in the Administrator license application process.
Jet Insurance Company provides the Private Real Estate School Bond as an assurance to the AREC that the applicant will follow every regulation of their license and fulfill all contractual obligations to students. The bond acts as a financial guarantee for students if the licensee fails to complete the obligations of the license.
The Jet team can help you acquire the Private Real Estate School Bond quickly, and with monthly payments exclusive to Jet Insurance Company, it’s affordable, too.
What Is the Lowest Price for the Private Real Estate School Bond?
With Jet, pricing for the $20,000 Private Real Estate School Bond starts at $200 annually or $20 monthly. Our surety bond prices are based on a small percentage of the bond limit and the credit score of the applicant. You can find the preferred credit rates for our annual and monthly choices in the chart below, as well as 2- and 3-year terms.
| Bond Term | Cost |
|---|---|
| Monthly | $20 |
| 1 Year | $200 |
| 2 Years | $350 |
| 3 Years | $500 |
Our monthly payment option requires no down payment and accrues no interest to ensure that our surety bonds are affordable (regardless of your credit score)!
What Is the Purpose of the Private Real Estate School Bond?
One of the Alabama Real Estate Commission’s main roles is to license and regulate real estate agents and brokers, as well as the institutions that offer education programs to potential real estate agents and brokers. The AREC requires the Administrator license and surety bond to assure students that Alabama schools under their jurisdiction meet quality education standards and are financially responsible when handling student fees and tuition payments. The Private Real Estate School Bond helps reinforce fiscal responsibility by reimbursing tuition and fees to students who were financially harmed by the school.
How Does the Application Process Work With Jet for the Alabama Private Real Estate School Bond?
The Jet team has created a quick and simple process to apply for the Private Real Estate School Bond. Our online application requires general information such as the applicant's name, their social security number, and the name and address of the school. A soft credit check is needed to provide a quote, but don't worry, this will have no affect on your personal credit score. Once you have selected a payment option and purchased the bond, Jet will file the bond form for you and send you a copy for your records or send the original bond to you to file with the AREC. The choice is up to you!
It is important to note that the AREC requires the name of the school owner and name of the school to be identical to the school license application and the bond form. Incorrect completion of these forms is the most common reason for licensure delays.
How Is the Private Real Estate School Bond Filed in Alabama?
Jet makes it easy and takes care of filing the bond for you! The Alabama Real Estate Commission requires the signed Private Real Estate School Bond to be filed with their office. Failure to maintain the original will result in the immediate suspension of the school’s license.
If you would prefer to send the bond in yourself, perhaps with your Administrator license application, you can select that option at checkout. The signed bond form and any additional paperwork must be mailed to the address listed below.
Alabama Real Estate Commission
1201 Carmichael Way
Montgomery, AL 36106
For further information regarding licensing, please refer to the AREC’s School Application Instructions.
Can I Cancel My Alabama Private Real Estate School Bond and Get a Refund?
At Jet, you can cancel your surety bond at any time! Simply send us a written cancellation request (an email to [email protected] is perfect), and we will notify the Alabama Real Estate Commission. Once the notice is received, the AREC will hold the bond for 30 day before releasing liability.
Regarding refunds, the Jet team will review the time left on a prepaid annual bond term to calculate the premium available for reimbursement. Monthly payment bondholders will continue their payments during the 30-day liability period, as the bond is still active. Once the cancellation is complete, the payments will cease.
Does the Private Real Estate School Bond Need to Be Renewed?
You won't have to worry about renewing your Private Real Estate School Bond if you choose Jet’s monthly payment option! Your bond will stay active as long as payments come out of your preferred account. When you are ready to cancel your bond, simply send Jet a written request.
For those who choose to pay in full, the Jet team will send you a renewal invoice prior to the bond term expiration date. No additional paperwork is required; payment is all that is needed.
How Does a Private Real Estate School Avoid Bond Claims?
Licensed private real estate education institutions are expected to comply with the Alabama State Code 34-27-6, all regulations of their license, and the obligations set in their student contracts. Failure to uphold these legal requirements can lead to the Alabama Real Estate Commission inflicting large fines onto the school owner, license suspension, permanent revocation of the school’s license, misdemeanor charges, and/or civil action that could result in a bond claim.
Bond claims occur mainly because a student has not received contractual education instruction from the real estate school for which they have paid for through fees or tuition, resulting in monetary loss of said student. This can occur if a school cancels courses or closes down permanently because of a depleting financial situation or a loss of license from the AREC.
Financially harmed students may submit a complaint to the AREC regarding school violations, which will be immediately reviewed and investigated. If it is found to be valid, the AREC can fine the school and suspend or terminate their license, but they cannot legally file a bond claim on behalf of the complainant. The AREC will typically recommend the student to take civil action against the school owner.
If civil action is taken and the court rules in favor of the student, the bond will cover reimbursement of any fees or tuition lost to the student, as well as an attorney’s fee fixed by the court. It is in the best interest of the school owner to resolve complaints promptly and pay what is due before their license is revoked and a claim is filed on their bond.
What Happens if I Get a Private Real Estate School Bond Claim?
Once you have received the state court’s bond claim order, immediately contact Jet with all available information! A member of the Jet team will brief you on how our bond claim process operates and will proceed with a review and investigation of all claim details, such as the civil action process and any supporting documentation.
If the claim is found to be valid, Jet Insurance Company is legally obligated by the surety bond’s terms to make payment up to the $20,000 bond limit. The owner of the school is ultimately responsible for their own actions and must reimburse Jet for the paid out claim. Failure to fulfill this obligation will lead to future difficulties obtaining an Alabama surety bond, specifically the Private Real Estate School Bond, which is required to maintain a license and legally operate as a real estate education institution.
