The proposed bill, SB292, known as the Alabama Property Protection Act of 2026, aims to strengthen protections against title fraud and enhance the integrity of property transactions in Alabama. Key provisions include the establishment of a consumer administrative complaint process through the Alabama Securities Commission, which will have the authority to investigate fraudulent real estate conveyances and void such transactions. The bill mandates that settlement agents verify the identity of sellers before closing and maintain documentation for five years. It also creates the Alabama Title Fraud Recovery Fund to compensate victims of title fraud, allows for expedited quiet title actions, and classifies aggravated fraudulent sale or lease of residential real property as a Class C felony. Additionally, the bill revises notary public duties, prohibiting remote notarization for certain transactions, and introduces new requirements for online real estate platforms to verify ownership before listing properties.

Furthermore, SB292 modifies existing laws related to the offering of false instruments for recording, elevating the offense from a Class A misdemeanor to a Class C felony, and allows probate judges to nullify fraudulent liens or deeds. The bill also establishes an expedited process for quiet title actions, requiring preliminary hearings within 30 days of a complaint, and clarifies the responsibilities of notaries public regarding remote electronic notarization. Notably, it includes provisions for the management of interior photos and videos of properties on online platforms, allowing owners to request the removal of such content. The act is set to take effect on October 1, 2026, and ratifies any remote notarization actions taken before July 1, 2021, under the Emergency Management Act of 1955.

Statutes affected:
Introduced: 8-6-61, 12-13-55, 13A-9-23, 6-6-540, 6-6-545, 6-6-571, 13A-9-22
Engrossed: 8-6-61, 12-13-55, 13A-9-23
Enrolled: 8-6-61, 12-13-55, 13A-9-23