The proposed bill, known as the Alabama Property Protection Act of 2026, aims to address title fraud and enhance protections for property owners in Alabama. It introduces a new Chapter 21 to Title 35 of the Code of Alabama, empowering the Alabama Securities Commission to investigate fraudulent real estate transactions, void such transactions, and impose civil penalties. Key provisions include requiring settlement agents to verify the identity of sellers and maintain documentation for five years, as well as allowing appeals to circuit courts regarding the validity of property conveyances. The bill also establishes the Alabama Title Fraud Recovery Fund to compensate victims of title fraud and classifies aggravated fraudulent sales or leases of residential real property as a Class C felony.

Additionally, the bill amends existing laws to streamline the process for quiet title actions, particularly in cases of fraudulent conveyance, and introduces new requirements for online real estate platforms to verify ownership before listing properties. It replaces the term "recording official" with "judge of probate" to emphasize the role of probate judges in nullifying fraudulent filings and allows affected individuals to petition for the expungement of such records. The bill also expands the responsibilities of notaries public, including the prohibition of remote notarization for certain transactions and the introduction of remote electronic notarization under specific conditions. Overall, the bill seeks to strengthen legal protections against fraud and improve the integrity of property transactions in Alabama, with an effective date set for October 1, 2026.

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