Alabama Vacation Timesharing Plan Broker/Salesman Bond

Alabama Vacation Timesharing Plan Broker Salesman Bond

In Alabama, sellers and brokers of vacation time share plans are required to hold a surety bond to be licensed with the Alabama Real Estate Commission (AREC). In the event the licensee violates any provision of the rules, regulations, and laws, the bond is there to provide recompense for financial losses.

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Jet Insurance Company offers the bond as a guarantee to the AREC that you will uphold your contractual duties. Get to work quickly by choosing Jet as your surety provider.

What Is the Bond Limit and Cost of the Vacation Timesharing Plan Broker/Salesman Bond?

The bond limit for timeshare plan sellers is $5,000, and the limit for timeshare plan brokers is $10,000. The price of the bond starts at $100 a year or $10 monthly, and goes up depending on your credit. See the chart below for different payment options. 

Bond TermCost
Monthly$10
1 Year$100
2 Years$175
3 Years$250
Vacation Timesharing Broker Bond Rates

The only difference between a broker and seller is that a broker is licensed as a real estate broker in addition to a vacation time-sharing plans seller and serves as a supervisor to other licensees who work selling timeshare plans that the broker represents. You can view definitions here, and see who is exempt from the requirement.

Why Does the Alabama Real Estate Commission Require This Bond?

The AREC is tasked with regulation of real estate licensees for the protection of the public. As part of the licensing process, the Timesharing Bond is required. A third party (Jet) is involved to ensure there is compensation available should the licensee fail or refuse to abide by the Time-Share Law. An example of when the bond would be used is when the licensee fails to disclose the purchaser’s total financial obligation (purchase price and any additional fees) in the contract and then lacks compliance with the AREC and/or courts to resolve the issue.

How to Apply for the Vacation Timesharing Plan Broker/Salesman Bond With Jet

To apply, all we need is some basic information. As with most surety bonds, a soft credit check is required to get you an approved rate. No worries, it doesn’t affect your credit score. Once Jet reviews the application information, a rate will be sent to you via email which you can purchase directly online. Upon payment, your bond copy and receipt of payment are sent to you.

Can Jet File the Vacation Timesharing Plan Broker/Salesman Bond for Me?

Sure thing! We are happy to send the bond to the AREC after we have received payment for the bond. However, you can choose to file the bond yourself during checkout. We will simply mail the original bond form to you, free of charge. The bond, and any other documentation, must be sent to the following address:

Alabama Real Estate Commission
1201 Carmichael Way
Montgomery, AL 36106

Can I Cancel My Alabama Vacation Timeshare Plan Bond and Get a Refund?

The bond can be cancelled with a 30-day notice to the Real Estate Commission. Keep in mind, though, that you need a bond for the entirety of your licensure. When you are ready to cancel, just send us an email to [email protected] and we will notify the AREC. The AREC will keep the bond active for 30 days upon receipt of notice and then release you and Jet from liability under the bond. 

If you are on a monthly payment plan, there is no refund available but the payments will end after the 30-day cancellation period.


If you paid for the bond in full at the time of purchase, Jet will calculate any potential refunds and get back any unused money to you. The bond is still considered active during the 30-day period before cancellation is complete and will be excluded from the refund calculation. 

How to Renew the Alabama Vacation Timesharing Plan Bond

Those utilizing a monthly payment plan do not have to renew their Timesharing Bond; every payment made keeps the bond active until cancellation is requested. Anyone paying for the bond on an annual basis or in multi-year terms will receive a renewal invoice from Jet via email and standard mail. As long as payment is made prior to the bond’s expiration date, Jet will make sure your bond stays active with the AREC. Failure to uphold a bond will result in license suspension.

How Does a Licensee Avoid Vacation Timesharing Plan Bond Claims?

Following the Code of Alabama, 1975, Title 34, Chapter 27, Article 3 (Time-Share Law), guarantees your compliance with the regulations and lessens your chance of a claim being filed. Generally, avoid violating provisions of Sections 34-27-51 through 34-27-60 of the Code and things should go smoothly. A typical claim results from failure or refusal to fix a violation of the Time-Share Law when given a chance. 

Examples of violations include:

Any person may bring civil action against the licensee. In addition, the AREC can bring judgment against the licensee in the appellate courts of Alabama. A final judgment will result in license suspension. Hearings can be scheduled if the licensee shows an interest in addressing problems. Jet recommends complying with the AREC and courts when issues arise to avoid disciplinary actions against the license such as a bond claim.

What Happens if I Get a Vacation Timesharing Plan Broker/Salesman Bond Claim?

Immediately notify Jet when a claim is filed against your Timeshare Bond. Even though the AREC and Alabama appellate courts generally do thorough investigation prior to requesting a bond claim payout, Jet still conducts a review of our own to ensure no faulty claims get through. Provide us with any applicable information you have.

Legitimate claims result in a claim payout from Jet to the claimant up to the bond’s full limit. Since the bond acts as an extension of credit, it is your responsibility to pay Jet back in the claim amount. Getting a bond claim and failing to pay it back will result in future difficulties getting a license and any surety bond.

Alabama Vacation Timesharing Plan Broker Salesman Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: