Auctioneer Bonds in Alabama and Minnesota
If you’re licensed to sell at auction in Alabama or Minnesota, your license comes with a bond. Ashton Agency can help identify the required bond, provide a quote, and explain where it needs to be filed.
Questions about your bond? Call our East Coast team at (800) 451-4854 or our West Coast team at (800) 452-2663, or use the quote form below.
What Is an Auctioneer Bond
An auctioneer bond protects the people who consign goods or buy at an auction if the auctioneer doesn’t follow the law. It’s a condition of your license. The bond is not insurance for your business or your sale items.
Three parties are involved: the auctioneer required to obtain the bond (the principal), the surety company that issues it, and the state or county that requires it (the obligee). Ashton helps arrange the bond but isn’t one of those three parties. If the surety pays a valid claim, the principal has to pay the surety back.
Who Needs One and What It Covers
Alabama
The Alabama State Board of Auctioneers requires every application for an auctioneer or apprentice auctioneer license to come with a $10,000 bond (Ala. Code 34-4-24). It can be a cash bond or a surety bond from a company authorized to do business in Alabama, payable to the Board in a form the Board approves. No license is issued until the bond is on file with the Board. Licenses renew annually and expire September 30. A real estate auction may also call for a real estate license, so check with the Board.
Minnesota
A county auditor licenses auctioneers, and the county treasurer approves and files the bond (Minn. Stat. 330.01 and 330.02). Every auctioneer must give a corporate surety bond to the county before making sales. The treasurer sets the amount, which can be anywhere from $1,000 to $3,000. The bond is conditioned on paying all sums the law requires and following the auctioneer laws. The license runs one year and goes to individuals 18 or older. Cities and towns can’t require a second license or bond from a county-licensed, bonded auctioneer, but they can ask for proof of the license and bond at least 14 days before an auction. Property owners selling their own property at auction are exempt.
Alabama and Minnesota at a glance:
| State | Bond amount |
|---|---|
| Alabama | $10,000 |
| Minnesota | $1,000 to $3,000, set by the county treasurer |
Why Choose Ashton Agency
A filing we know
Ashton has been writing bonds since 1966, so a license bond requirement like this one isn’t new to us.
Two states, two processes
Alabama files with the state Board and Minnesota files with a county treasurer. We can walk you through where yours goes.
Choices and rates
We work with more than one carrier, so we can compare the bond options and rates for your license.
The team
You can talk with a member of the Ashton team about the bond you’ve been asked to get.
Frequently Asked Questions
Does an apprentice auctioneer need a bond in Alabama?
Yes. Alabama’s $10,000 bond requirement applies to applications for both auctioneer and apprentice auctioneer licenses.
Who sets the bond amount in Minnesota?
The county treasurer sets it, between $1,000 and $3,000. Ask your county treasurer which amount applies to you before you request a quote.
If the bond is $10,000, do I pay $10,000?
No. The bond amount is the coverage the state sets. What you pay is a premium, quoted separately for your license.
Can I use cash instead of a surety bond in Alabama?
Alabama allows either a cash bond or a surety bond payable to the Board.
Do I need a second license or bond if I auction in another city?
In Minnesota, no. A county license and bond are accepted statewide, though a city can ask for proof of both at least 14 days before an auction.
Request an Auctioneer Bond Quote
Tell us about your business and we’ll follow up with a real quote.