Appraisal management companies applying for registration in Alabama must obtain a $25,000 Alabama Appraisal Management Company License Bond and file it with the Alabama Real Estate Appraisers Board. The bond guarantees the appraisal management company’s compliance with applicable Alabama laws and provides financial protection for qualifying parties harmed by a covered violation.
The bond costs $250 annually and is available for instant issue through A1SuretyBonds.com. Simply complete the application online, pay for your bond, and download a copy of your bond.
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What Is an Alabama Appraisal Management Company License Bond?
The Alabama Appraisal Management Company License Bond is a financial guarantee required for appraisal management companies operating in Alabama. The official Alabama bond form refers to it as an Appraisal Management Company Registration Bond.
The bond supports the company’s registration with the Alabama Real Estate Appraisers Board, commonly referred to as REAB.
An appraisal management company, or AMC, generally coordinates real estate appraisal services for lenders, mortgage companies, financial institutions, and other users of appraisal services. An AMC may maintain a network of independent appraisers, assign appraisal orders, review completed appraisal reports, and manage communications between appraisers and clients.
The bond involves three parties:
- Principal: The appraisal management company purchasing the bond.
- Obligee: The State of Alabama, acting through the Alabama Real Estate Appraisers Board.
- Surety: The authorized surety company issuing the bond.
The bond guarantees that the appraisal management company will faithfully perform the obligations imposed by Alabama law. It is a licensing requirement and is not the same as an ordinary commercial insurance policy.
Who Needs an Alabama Appraisal Management Company Bond?
A business generally needs this bond when applying for standard registration to operate as an appraisal management company in Alabama.
Alabama law generally prohibits an unregistered person or business from:
- Operating as an appraisal management company.
- Performing appraisal management services.
- Attempting to perform appraisal management services.
- Advertising or representing that it provides appraisal management services in Alabama.
The registration and bonding requirement may apply to both Alabama-based companies and out-of-state companies that provide appraisal management services involving real property located in Alabama.
Businesses that may be exempt
Certain entities or activities may qualify for an exemption under Alabama law. These may include:
- A financial institution regulated by a federal financial institution regulatory agency.
- A department, division, or unit of a federally regulated financial institution.
- A person who directly contracts with an appraiser and signs the completed appraisal report with that appraiser.
A subsidiary owned by a financial institution is not necessarily considered a department, division, or unit of that financial institution.
Businesses should not assume they qualify for an exemption. A company with questions about its registration status should contact the Alabama Real Estate Appraisers Board before conducting appraisal management activities without a registration or bond.
Alabama Appraisal Management Company Bond Amount
The required Alabama Appraisal Management Company License Bond amount is $25,000.
| Registration typeRequired bond amountAnnual premiumIssuance | |||
| Standard Alabama appraisal management company registration | $25,000 | $250 per year | Instant issue |
The $25,000 bond requirement is a fixed amount. It does not ordinarily vary based on:
- Annual sales.
- Number of appraisal orders.
- Number of appraisers in the company’s network.
- Number of business locations.
- Whether the applicant is located inside or outside Alabama.
- Whether the AMC operates in one state or multiple states.
The bond amount and the annual premium are different.
The bond amount is the $25,000 financial guarantee required by Alabama. The premium is the price the appraisal management company pays to purchase the bond.
Applicants do not pay the full $25,000 bond amount. The annual premium through A1SuretyBonds.com is $250.
Legal Authority and Licensing Agency
The Alabama appraisal management company bond requirement is established through Alabama statutes and administrative regulations.
Alabama Code § 34-27A-50
This section generally requires a person or company to register before operating, attempting to operate, or advertising as an appraisal management company in Alabama.
Alabama Code § 34-27A-51
This section addresses appraisal management company registration requirements. It also provides that an Alabama AMC registration is valid for one year.
Alabama Code § 34-27A-55
This section requires an applicant to maintain a $25,000 surety bond issued by a surety company authorized to conduct business in Alabama.
The statute also requires the bond amount to be restored annually when the appraisal management company renews its registration.
Alabama Administrative Code Rule 780-X-17-.03
This administrative rule implements the AMC registration requirements and requires the applicant to submit a $25,000 bond using the form approved by the Alabama Real Estate Appraisers Board.
Licensing agency
The licensing and registration agency is:
Alabama Real Estate Appraisers Board
100 North Union Street, Suite 370
Montgomery, Alabama 36104
The official bond names the State of Alabama as the obligee. The completed bond is submitted to and administered by the Alabama Real Estate Appraisers Board.
What Does the Alabama AMC Bond Cover?
The Alabama AMC bond guarantees the appraisal management company’s faithful performance of obligations imposed by state law.
Depending on the facts, applicable law, and official bond terms, these obligations may include:
- Complying with Alabama appraisal management company laws.
- Using properly licensed or certified real estate appraisers.
- Confirming that appraisers remain in good standing.
- Assigning appraisers who are competent to perform the requested appraisal.
- Protecting appraiser independence.
- Avoiding improper influence over appraisal results.
- Maintaining required business and appraisal assignment records.
- Reviewing appraisal work for compliance with professional standards.
- Following Alabama Real Estate Appraisers Board regulations.
- Responding appropriately to lawful Board inquiries and orders.
The bond may provide a source of financial recovery for qualifying parties who suffer harm because the AMC failed to perform an obligation covered by the law and bond.
The bond does not guarantee a particular property value or appraisal result. It also does not cover every business disagreement, customer complaint, or financial loss.
Whether a claim is valid depends on factors such as:
- The conduct alleged.
- The applicable Alabama law.
- The language of the official bond form.
- The nature of the claimant’s damages.
- The evidence supporting the claim.
The surety’s aggregate liability is generally limited to the $25,000 bond amount.
If the surety pays a valid claim, the appraisal management company may be required to reimburse the surety. This reimbursement obligation is one of the primary differences between a surety bond and conventional business insurance.
How Much Does an Alabama Appraisal Management Company Bond Cost?
The Alabama Appraisal Management Company License Bond costs $250 per year through A1SuretyBonds.com.
| Bond amount | Annual premium | Issuance process |
| $25,000 | $250 | Instant issue online |
The $250 premium purchases the required $25,000 bond for a one-year term. The premium must generally be paid again when the bond is renewed for another registration period.
The bond premium is separate from:
- Alabama AMC application fees.
- Registration renewal fees.
- Appraisal Subcommittee National Registry fees.
- Other licensing or administrative charges imposed by REAB.
Applicants should verify current registration and government filing fees directly with the Alabama Real Estate Appraisers Board.
What Does Instant Issue Mean?
An instant issue bond can be purchased and issued through a streamlined online process.
There is no need to submit an application and wait for a separate approval notification before purchasing the bond. The online application collects the information needed to prepare the official bond document.
The process is simple:
- Complete the secure online application.
- Pay the $250 annual bond premium.
- Download a copy of your completed bond.
Applicants should enter the company’s legal name, address, and other information carefully. The information shown on the bond should match the information submitted to the Alabama Real Estate Appraisers Board.
Instant issue refers to the bond purchasing and document-delivery process. The appraisal management company must still complete the separate REAB registration process and satisfy all state licensing requirements.
How to Get an Alabama Appraisal Management Company Bond
Obtaining the required Alabama AMC bond through A1SuretyBonds.com is straightforward.
1. Confirm the registration requirement
Verify that the company is applying for standard Alabama appraisal management company registration and is not subject to a separate federally regulated process or statutory exemption.
2. Complete the secure online application
Provide the information needed to issue the bond, including:
- Legal business name.
- Principal business address.
- Contact information.
- Authorized representative information.
- Requested bond effective date.
The company’s legal name should match the name used on the Alabama AMC registration application.
3. Pay the $250 annual premium
After completing the online application, pay the fixed $250 annual bond premium.
4. Download your bond
Once payment is completed, download a copy of your bond documents.
Review the documents to confirm that the following information is correct:
- Appraisal management company name.
- Business address.
- Bond amount.
- Bond effective date.
- Bond number.
5. Sign and file the bond
The principal must sign the official bond form. The surety’s attorney-in-fact must also execute the bond and provide the required power of attorney.
File the completed bond with the Alabama Real Estate Appraisers Board according to the Board’s current instructions.
Complete the Application, Pay, and Download Your Alabama AMC Bond
Alabama AMC Bond Filing Requirements
The official Alabama bond form directs applicants to submit the original executed bond to:
Alabama Real Estate Appraisers Board
100 North Union Street, Suite 370
Montgomery, Alabama 36104
The completed bond generally includes:
- The appraisal management company’s legal name.
- Principal business address.
- $25,000 bond amount.
- Bond number.
- Bond effective date.
- Principal’s signature.
- Signer’s official title.
- Attorney-in-fact’s signature.
- Attached surety power of attorney.
The currently published Alabama bond form does not display a separate notary acknowledgment or corporate seal requirement.
The online process allows the applicant to download a copy of the issued bond. The applicant should review the Alabama Real Estate Appraisers Board’s current filing instructions to determine whether the original executed document must be mailed or whether any additional delivery method is accepted.
Applicants should retain a copy of the completed bond and any mailing or delivery confirmation for their records.
Bond Renewal and Cancellation Requirements
An Alabama appraisal management company registration is generally valid for one year. The company must maintain the required bond while its registration remains active.
The bond should be renewed before the current registration or bond period expires. A lapse in required bond coverage may jeopardize the company’s registration and authority to provide appraisal management services in Alabama.
Bond cancellation
The surety may cancel the bond by providing at least 60 days’ written notice to:
- The appraisal management company.
- The Alabama Real Estate Appraisers Board.
Cancellation does not generally eliminate liability for covered conduct that occurred while the bond was active.
An AMC receiving a cancellation notice should obtain replacement bond coverage promptly. The replacement bond should become effective before the existing bond terminates to avoid a gap in required coverage.
Alabama AMC Bond vs. General Appraisal Management Company Bonds
Appraisal management company bond requirements are established separately by each state.
Although several states require AMCs to maintain surety bonds, the following requirements may differ:
- Required bond amount.
- State licensing agency.
- Official obligee.
- Bond form.
- Registration term.
- Cancellation notice.
- Filing procedure.
- Claim rights.
- Renewal documentation.
Alabama requires a fixed $25,000 bond filed with the Alabama Real Estate Appraisers Board using the approved state form.
An appraisal management company operating in multiple states may need a separate registration and surety bond for each state.
Learn more about appraisal management company license bond requirements by state.
Why Purchase Your Bond Through A1SuretyBonds.com?
A1SuretyBonds.com provides a simple online process for satisfying the Alabama appraisal management company bond requirement.
Benefits include:
- Instant issue.
- Fixed $250 annual premium.
- Secure online application.
- Immediate online payment.
- Downloadable bond documents.
- Assistance with Alabama-specific bond requirements.
- Experience with license and permit surety bonds.
- Practical support during the issuance process.
Simply complete the application online, pay for your bond, and download a copy of your bond.
The instant issue process applies to purchasing and receiving the bond documents. The appraisal management company remains responsible for completing its REAB registration and filing all required documents with the state.
Frequently Asked Questions
Who must obtain an Alabama Appraisal Management Company Bond?
Businesses applying for standard registration to operate or advertise as appraisal management companies in Alabama generally must obtain the bond. Certain federally regulated entities and other businesses may qualify for separate procedures or statutory exemptions.
What is the required Alabama AMC bond amount?
The required bond amount is $25,000.
How much does the Alabama AMC bond cost?
The Alabama Appraisal Management Company License Bond costs $250 annually through A1SuretyBonds.com.
Is the Alabama AMC bond instant issue?
Yes. This bond is available for instant issue. Simply complete the application online, pay for your bond, and download a copy of your bond.
What is the difference between instant issue and instant approval?
Instant issue describes the complete purchasing process. The applicant enters the required information, pays the premium, and receives access to the issued bond documents without waiting for a separate approval step.
Do I have to pay the full $25,000 bond amount?
No. The applicant pays the $250 annual premium. The $25,000 amount is the financial guarantee provided by the bond.
Is the AMC bond the same as business insurance?
No. Business insurance primarily protects the insured company. A surety bond protects the obligee and qualifying claimants from certain covered violations by the bonded company.
If the surety pays a valid claim, the appraisal management company may be required to reimburse the surety.
Who is the obligee on the Alabama AMC bond?
The official bond is issued in favor of the State of Alabama. It is filed with and administered by the Alabama Real Estate Appraisers Board.
Where do I file the bond?
The official bond form directs applicants to submit the original executed bond to the Alabama Real Estate Appraisers Board at 100 North Union Street, Suite 370, Montgomery, Alabama 36104.
How often must the bond be renewed?
The bond must be maintained annually while the appraisal management company remains registered in Alabama.
Can I purchase and download the bond online?
Yes. Complete the secure application, pay the $250 annual premium, and download a copy of your bond through A1SuretyBonds.com.
Get Your Alabama Appraisal Management Company Bond Online
Purchase the required $25,000 Alabama Appraisal Management Company License Bond for a fixed $250 annual premium.
This bond is instant issue:
- Complete the application online.
- Pay for your bond.
- Download a copy of your bond.
Before filing, confirm that the legal company name and address shown on the bond match the information submitted to the Alabama Real Estate Appraisers Board.