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HB426 ENGROSSED
Page 0
HB426
I3L8366-2
By Representative Lee
RFD: Judiciary
First Read: 12-Feb-26
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First Read: 12-Feb-26
A BILL
TO BE ENTITLED
AN ACT
Relating to title fraud; to add a new Chapter 21 to
Title 35, Code of Alabama 1975, to create the Alabama Property
Protection Act of 2026; to establish a consumer administrative
complaint process through the Alabama Securities Commission;
to authorize the commission to investigate and take action
against alleged fraud in certain real estate conveyances
including voiding fraudulent conveyances; to require
settlement agents to verify identity of a seller prior to
closing and to maintain identification documentation for five
years; to allow appeals to the circuit court of administrative
orders regarding the validity of real property conveyances; to
provide that circuit court shall use a de novo standard of
review for appeals; to add Sections 8-6-61, 12-13-55, and
13A-9-23 to the Code of Alabama 1975, to create the Alabama
Title Fraud Recovery Fund to be administered by the Alabama
Securities Commission; to grant the Alabama Securities
Commission investigative and enforcement authority; to
authorize civil penalties for certain fraudulent conveyance
actions; to allow judges of probate to establish a real
property owner notification service; to establish the crime of
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property owner notification service; to establish the crime of
aggravated fraudulent sale or lease of residential real
property and classify the crime as a Class C felony; to add a
new Chapter 19J to Title 8, Code of Alabama 1975, to require
online real estate platforms to verify ownership for listings
in certain transactions; to amend Sections 6-6-540, 6-6-545,
and 6-6-571, Code of Alabama 1975, to provide for expedited
quiet title actions and recovery of costs and attorney fees in
certain quiet title actions; to amend Sections 13A-9-12 and
13A-9-22, Code of Alabama 1975, to make fraudulent sale of
residential real property a Class D felony and to allow
expungement of fraudulent conveyance documents; to amend
Sections 36-20-73, and 36-20-73.1, Code of Alabama 1975, to
revise duties of notaries public, to prohibit remote
notarization of deeds for certain transactions; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Chapter 21, commencing with Section 35-21-1,
is added to Title 35, Code of Alabama 1975, to read as
follows:
§35-21-1
(a) This chapter shall be known and may be cited as the
Alabama Property Protection Act of 2026.
(b) The Legislature finds that protecting private
property owners from seller impersonation fraud and other
forms of title fraud, and ensuring swift remedies when real
property is fraudulently conveyed, are essential to the public
interest and to the integrity of Alabama's property records
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interest and to the integrity of Alabama's property records
and real estate market.
§35-21-2
For the purposes of this chapter, the term "commission"
means the Alabama Securities Commission.
§35-21-3
(a) The commission shall have authority to investigate
claims and administer, implement, and enforce the law under
this chapter with respect to all regulated conduct,
individuals, and entities described herein, regardless of
licensure under any other provision of law. This authority
shall not preclude other professional licensing authorities
from pursuing professional licensing violations under Chapter
25 of Title 27, Chapter 3 of Title 34, Chapter 27 of Title 34,
or Chapter 20 of Title 36.
(b) The commission may adopt rules necessary to carry
out this chapter, including, but not limited to, rules
governing:
(1) Consumer complaint intake and resolution
procedures;
(2) Disclosure forms and content;
(3) Examination, reporting, and recordkeeping
requirements;
(4) Fees, fines, penalty schedules, and remedial
measures established by rule;
(5) A means of giving constructive notice of the
commission's administrative orders to third parties in a
central location or searchable database; and
(6) Definitions and standards necessary to prevent
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(6) Definitions and standards necessary to prevent
circumvention of this chapter.
(c) The commission may:
(1) Conduct investigations and examinations and issue
administrative orders detailing its findings;
(2) Require the production of documents and testimony;
(3) Issue subpoenas;
(4) Issue cease and desist orders;
(5) Impose administrative fines and penalties per
violation;
(6) Order restitution, rescission, disgorgement, or
other remedial relief;
(7) Prosecute criminal violations where authorized by
law; and
(8) Coordinate with other agencies as authorized by
law.
(d) The commission may bring an action in any court of
appropriate jurisdiction to obtain an order imposing:
(1) Injunctive or other relief;
(2) Civil penalties;
(3) Restitution, rescission, or disgorgement;
(4) Enforcement of administrative orders;
(5) Recovery of investigative and enforcement costs;
and
(6) Appointment of a receiver.
(e) Nothing in this chapter shall be construed to limit
criminal prosecution under any law or to require exhaustion of
administrative remedies prior to criminal enforcement.
(f) Nothing in this chapter shall apply to the
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(f) Nothing in this chapter shall apply to the
acquisition of real property, easements, or rights-of-way for
utility infrastructure.
§35-21-4
(a) When the commission determines, after receiving a
complaint and conducting an investigation, that a real
property or real estate conveyance occurred as a result of a
criminal act or fraud, any proceeds derived from the
fraudulent conveyance may be forfeited and deposited into the
Alabama Title Fraud Recovery Fund established under Section
8-6-61. No person or individual may profit by retaining
proceeds from such a conveyance. Bank, credit union, title
insurer, state or local government fees, or principal and
interest payments to a lender may not be included in
forfeiture.
(b) This act does not limit the right to bring civil or
equitable actions that may lawfully arise under existing
Alabama laws.
(c) The commission shall have the authority to
administratively determine land fraud and fraudulent
conveyance under this chapter. Nothing in this chapter shall
limit the jurisdiction of the circuit court to hear de novo
appeals or to grant equitable relief consistent with a final
administrative order of the commission.
35-21-5
(a) A real estate agent or broker licensed under
Chapter 27 of Title 34 may not enter into an agreement to sell
or lease real property when the seller is unknown to the real
estate agent or broker and is not physically present to meet
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estate agent or broker and is not physically present to meet
with the real estate agent or broker, unless the seller
provides government-issued identification and ownership
records of the real property.
(b) Prior to closing any transfer of Class III
properties, as defined in Section 40-8-1, a settlement agent
shall conduct identity document validation and identity
verification of the seller of real property that is vacant or
not owner-occupied and unencumbered by a security instrument.
(c) Documentation demonstrating compliance with this
section shall constitute an affirmative defense to a civil
claim brought under this chapter. The existence of this
affirmative defense shall be a question of law for the court
and may be decided on a motion for summary judgment.
(d) The documentation demonstrating compliance required
under this section shall be maintained for five years. Any
civil action against a real estate agent, broker, or
settlement agent arising from a transfer of real property
shall be commenced no later than four years after the date the
transfer is recorded in the public records.
§35-21-6
(a) The commission may fund a statewide real property
notification alert system that notifies a real property owner
by text or email when a recording is made on his or her real
property.
(b) The commission may provide training and assistance
to any municipal, county, or state entity, their staff, and
real property owners on real estate fraud prevention and
consumer education.
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consumer education.
§35-21-7
The expedited quiet title process established in
Section 6-6-540 applies to transactions in this chapter.
§35-21-8
(a) Upon receipt of a complaint alleging land fraud or
a fraudulent conveyance, the commission may investigate the
matter using all authority granted under this chapter.
(b) If the commission determines that a real property
conveyance resulted from a criminal act or fraud involving the
true ownership of the real property, the commission may issue
a final administrative order declaring the conveyance void.
The commission, in the same order, may impose civil penalties,
order restitution or disgorgement, and assess any other
remedies authorized by law.
(c) A final administrative order issued by the
commission declaring a conveyance void shall be legally
binding and enforceable. The administrative order shall not be
stayed except by order of the circuit court in a timely filed
de novo appeal.
(d) Upon issuance of a final administrative order, the
commission shall serve a copy of the order by certified mail
upon the complainant and all parties to the proceeding. The
complainant may file a certified copy of the final
administrative order in the circuit court of the county where
the real property is located for purposes of enforcement and
quiet title relief.
§35-21-9
(a) Any party aggrieved by a final administrative order
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(a) Any party aggrieved by a final administrative order
of the commission may seek judicial review by filing an appeal
in the circuit court of the county where the real property is
located no later than 30 days after the date of the final
administrative order. The circuit court shall apply a de novo
standard of review.
(b) The circuit court shall conduct a de novo review of
the commission's determination and may affirm, modify, or
vacate the order.
§35-21-10
(a) If no timely appeal is filed, the circuit court,
upon a quiet title petition by the complainant with a copy of
the administrative order attached, shall enter an order
enforcing the final administrative order no later than 30 days
from the filing date of the quiet title petition without
further evidentiary hearing or procedural delay. The court may
waive the filing fees and court costs for good cause shown.
The enforcement order shall:
(1) Declare the fraudulent conveyance or attempted
conveyance void;
(2) Direct the judge of probate to nullify any recorded
instrument that clouds title or conflicts with the
administrative order; and
(3) Quiet title in favor of the rightful real property
owner.
(b) Upon receipt of a quiet title enforcement order
issued to the circuit court pursuant to this section, the
judges of probate shall promptly record the circuit court
order and administrative order.
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order and administrative order.
(c) The judge of probate may comply with an enforcement
order under this section by recording the enforcement order in
the official real property records and making a marginal
notation on the voided instrument referencing the recorded
order, or making a cross reference to the voided instrument
when recording the enforcement order.
§35-21-11
(a) When the commission determines, after receiving a
complaint and conducting an investigation, that a real
property or real estate conveyance occurred as a result of a
criminal act or fraud, any proceeds derived from the
fraudulent conveyance may be ordered to be forfeited and
deposited into the Alabama Title Fraud Recovery Fund
established under Section 8-6-61, unless otherwise ordered by
the circuit court.
(b) This section does not limit the right to bring
civil or equitable actions that may lawfully arise under
existing Alabama laws.
(c) Any person who knowingly fails to remit proceeds
from a fraudulent conveyance or files frivolous litigation to
delay enforcement may be assessed an additional civil penalty
of ten thousand dollars ($10,000), payable to the Alabama
Title Fraud Recovery Fund.
§35-21-12
The crimes of fraudulent sale or lease of residential
real property or aggravated fraudulent conveyance of real
property established in Article 1, Chapter 9 of Title 13A does
not preclude the state from pursuing additional criminal
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not preclude the state from pursuing additional criminal
prosecution as authorized by law.
Section 2. Sections 8-6-61, 12-13-55, and 13A-9-23 are
added to the Code of Alabama 1975, to read as follows:
§8-6-61
(a) There is established in the State Treasury an
Alabama Title Fraud Recovery Fund to be administered by the
Alabama Securities Commission in accordance with this section.
The fund shall be budgeted and allotted in accordance with
Article 4 of Chapter 4 of Title 41 and Chapter 19 of Title 41.
(b) Money in the fund shall only be used to compensate
individuals injured by title conveyance fraud for actual
economic damages, excluding interest and court costs, incurred
by the injured party. Payments from the fund are subject to
the following limitations and conditions:
(1) The fund shall only make payments to real property
owners who file a complaint with the commission as required by
this section.
(2) The fund shall not issue payments based on consent
judgments.
(c) The commission, by rule, shall set the maximum
payment amount that can be issued from the fund to a
complainant.
(d) Any person with a claim for title conveyance fraud
may submit a written complaint to the commission, which may
investigate the complaint.
(e) During the investigation of a complaint, the
commission may:
(1) Hold hearings;
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(1) Hold hearings;
(2) Subpoena witnesses;
(3) Administer oaths;
(4) Examine any individual under oath; and
(5) Compel the production of records, books, papers,
contracts, or other documents.
(f) If an individual fails to comply with a subpoena
issued by the commission or to testify on matters for which
the individual may be questioned under this section, the
commission may petition a court of competent jurisdiction for
enforcement.
(g) If the commission determines that a person is
liable for fraudulent title conveyance, the commission may
take any of the following actions:
(1) Issue an administrative order declaring the
conveyance void pursuant to Chapter 21 of Title 35.
(2) Impose a civil penalty of up to one hundred
thousand dollars ($100,000) per transaction on the liable
person or persons who have committed the fraud, which shall be
deposited into the Alabama Title Fraud Recovery Fund.
(h) Any final order issued by the commission shall be
legally binding and shall not be stayed except by order of the
circuit court in a timely filed appeal. Any party dissatisfied
with a final judgment or decision by the commission may appeal
to the circuit court where the property is located no later
than 30 days from the date of the final administrative order
of the Alabama Securities Commission. For appeals, the
commission shall provide a certified transcript of the
proceedings and actions taken by the commission to the circuit
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proceedings and actions taken by the commission to the circuit
court to which the appeal is taken.
(i) The judge of probate may comply with an
administrative order under this section by recording the
enforcement order in the official real property records and
making a marginal notation on the voided instrument
referencing the recorded order, or by making a cross reference
to the voided instrument when recording the administrative
order.
(j) (1) Nothing in this chapter shall apply to the
acquisition of real property, easements, or rights-of-way for
utility infrastructure.
(2) Banks, credit unions, title insurers, and state or
local governments shall not be subject to civil penalties
under this section.
§12-13-55
(a) In cooperation with the Alabama Securities
Commission, each judge of probate may establish a real
property owner notification service that informs owners of
real property in the county whenever a document is recorded in
the name of the real property owner or the address of the real
property owner registered with the recording clerk where the
property is located.
(b) Once established, the property owner notification
service shall be free and available to any property owner who
owns real property in the county.
(c) A judge of probate, the commission, or a third-
party provider shall not be liable for failure to provide
notice under this section.
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notice under this section.
§13A-9-23
(a) A person commits the crime of aggravated fraudulent
sale or lease of residential real property if, with the intent
to defraud:
(1) The person either: (i) lists, advertises, or causes
the listing or advertisement of residential real property for
sale knowing that the person or the purported seller has no
legal title or authority to sell the real property; or (ii)
rents, leases, or causes the rental or leasing of real
property knowing the person or the purported lessor has no
legal ownership or authority to lease the property; and
(2) Either: (i) the person received funds related to
the sale or lease; or (ii) the property is owned individually
or jointly by an individual who is 70 years of age or older.
(b) Aggravated fraudulent sale of real property is a
Class C felony.
Section 3. Chapter 19J, commencing with Section
8-19J-1, is added to Title 8, Code of Alabama 1975, to read as
follows:
Chapter 19J
§8-19J-1
For the purposes of this chapter, the term "online real
estate platform" means: (i) a digital media platform whose
primary business purpose is to publicly advertise real estate
for sale or lease; or (ii) a real estate website whose primary
purpose is publicly advertising real estate for sale or lease.
For purposes of this chapter, an online real estate platform
does not include:
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does not include:
(1) Nonpublic websites, portals, list serves, social
media websites, or news sites.
(2) Multiple listing services operated by or on behalf
of licensed real estate brokers and accessible only to
licensed real estate professionals and their clients; or
(3) Internal business tools that do not provide a
public-facing listing search experience to the general public.
§8-19J-2
(a) For a listing that originates from an online real
estate platform through a direct contract with the property
owner and is not first listed with a licensed real estate
broker, real estate brokerage, or multiple listing service,
the platform shall require the following before publishing,
hosting, advertising, or otherwise publicly disseminating real
property for sale or lease:
(1) A copy of the owner's government-issued
identification that is unexpired and includes the individual's
photograph, name, and address.
(2) A copy of the official county recorder's records
showing the owner of record, a copy of the deed to the real
property with the owner's name, or a title history.
(b) An online real estate platform may satisfy the
requirements of this section by using a third-party identity
or title verification service.
§8-19J-3
(a) An online real estate platform may display,
publish, host, advertise, or otherwise distribute interior
photos or videos of real property that is not currently listed
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photos or videos of real property that is not currently listed
for sale, subject to the requirements of this section.
(b) The current owner of record of real property may
submit a written request to an online real estate platform to
remove interior photos or videos of the owner's property from
public display.
(c) Upon receipt of a request submitted pursuant to
subsection (b), the online real estate platform shall:
(1) Verify the identity and ownership status of the
requesting party through reasonable means; and
(2) Remove the interior photos or videos from public
display within 30 days after verification of ownership.
(d) Nothing in this section shall require an online
real estate platform to remove interior photos or videos
absent a request from the current property owner.
(e) This section shall not be construed to prohibit the
retention of interior photos or videos for archival, legal
compliance, fraud prevention, or internal business purposes,
provided such photos or videos are not publicly displayed
after a valid removal request.
§8-19J-4
(a) An online real estate platform that follows the
practices outlined in Sections 8-19J-2 and 8-19J-3 shall
create a rebuttable presumption that the platform acted
reasonably. Such adherence does not preclude administrative
action by the commission. The existence of the presumption
shall be a question of law for the court and may be determined
on a motion for summary judgment.
(b) An action under this chapter against an online real
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(b) An action under this chapter against an online real
estate platform shall be commenced no later than four years
after the date the transfer is recorded in the public record.
(c) An online real estate platform may not be liable
for negligence arising from a syndicated listing or from an
intermediary agent or broker that fails to obtain property
documentation before listing real property.
§8-19J-5
No Internet service provider, or its affiliates or
subsidiaries, search engine, or cloud service provider shall
be considered to have violated this chapter solely for
providing access or connection to or from a website, to
content on the Internet, or to a facility, system, or network
not under that provider's control, including transmission,
download, intermediate storage, or access software.
Section 4. Sections 6-6-540, 6-6-545, 6-6-571, 13A-9-12
13A-9-22, 36-20-73, and 36-20-73.1, Code of Alabama 1975, are
amended to read as follows:
"§6-6-540
(a) When any person is in peaceable possession of
lands, whether actual or constructive, claiming to own the
same, in his or her own right or as a personal representative
or guardian, and his or her title thereto , or any part
thereof, is denied or disputed or any other person claims or
is reputed to own the same, any part thereof, or any interest
therein or to hold any lien or encumbrance thereon and no
action is pending to enforce or test the validity of such the
title, claim, or encumbrance, such the person or his or her
personal representative or guardian , so in possession , may
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personal representative or guardian , so in possession , may
commence an action to settle the title to such lands and to
clear up all doubts or disputes concerning the same.
(b)(1) An expedited quiet title action against a parcel
of real property may be maintained under this article based on
a fraudulent title conveyance allegation. All actions to quiet
title based on fraudulent title conveyance allegations must be
brought in the circuit court where the real property is
located which shall have equitable jurisdiction pursuant to
Section 12-11-31.
(2)a. A petitioner bringing an action to quiet title
based on fraudulent title conveyance allegations is entitled
to an expedited procedure. The court shall set the date, time,
and place for a preliminary hearing on the petition no later
than 30 days from service of the complaint.
b. In an expedited action to quiet title under this
section, when the court determines that an attempt was made to
fraudulently convey the land at issue from a plaintiff who had
legal title to the land before the conveyance, the court shall
quiet title in and award the plaintiff with the same title and
rights to the land that the plaintiff enjoyed before the
attempted conveyance.
(3) A petitioner may file a single petition with the
clerk of the circuit court for the judicial circuit in which
the subject property is located for an order to quiet title
and expedite foreclosure to one or more parcels of real
property under this section. The petition shall identify each
parcel by its legal description, tax parcel number, and street
address, if available.
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address, if available.
(4) The Administrative Office of Courts shall provide a
simplified form for the filing of a complaint to quiet title
based on a fraudulent title conveyance allegation and
instructions for completing the form. "
"§6-6-545
(a) No judgment for costs shall be had under this
division against a defendant who suffers a judgment by default
against him against whom a plaintiff receives a default
judgment or who, in his or her answer, disclaims all title to,
interest in, or encumbrance on the lands ; but the . The court
shall, in those cases , and without further proof, shall
adjudge that such the defendant has no estate or interest in
or encumbrance on such lands , or any part thereof. Any
defendant who shall , by answer under oath, deny denies that he
or she claims, or ever has claimed, or pretended to have any
estate, interest, or encumbrance in , or upon , such lands, or
any part thereof of the lands , shall be entitled to recover
his or her costs in the action.
(b) In any case where the court finds that the
defendant fraudulently created or caused to be created the
instrument that is sought to be cancelled, the plaintiff shall
be entitled to recover all costs, including reasonable
attorney fees, incurred in bringing the action to cancel the
instrument. "
"§6-6-571
(a) The court shall have the power to may assess the
cost of a hearing held pursuant to the terms of this division,
including the fee of the guardian ad litem, to the
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including the fee of the guardian ad litem, to the
plaintiffs ;, provided , that should some of the defendants file
that if any defendant files counterclaims or should certain
persons intervene any person intervenes , the cost shall be
assessed by the court as justice may require.
(b) In any case where it is found that the defendant
fraudulently created the instrument that is sought to be
canceled, the plaintiff shall be entitled to recover all
costs, including reasonable attorney fees, incurred in
bringing the action to cancel the instrument. "
"§13A-9-12
(a) A person commits the crime of offering a false
instrument for recording if, knowing that a written instrument
relating to or affecting real or personal property, or an
interest therein, or directly affecting contractual
relationships contains a material false statement or material
false information, and with intent to defraud, he or she
presents or offers it to a public office or a public employee,
with the knowledge that it will be registered, filed , or
recorded or will become a part of the records of that public
office or public employee.
(b) Offering a false instrument for recording is a
Class A misdemeanor.
(c) A person commits the crime of offering a false
instrument for recording against a public servant if the
person offers, for recording, a written instrument which that
relates to or affects the real or personal property, or an
interest therein, or a contractual relationship of a public
servant, knowing that the written instrument contains a
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servant, knowing that the written instrument contains a
materially false statement or materially false information,
with the intent to defraud, intimidate, or harass the public
servant, or to impede the public servant in the performance of
his or her duties. For the purposes of this subsection, public
servant is defined as in Section 13A-10-1.
(d) Offering a false instrument for recording against a
public servant is a Class C felony.
(e)(1) A recording official judge of probate may
nullify or expunge from an official record a false or
fraudulent lien , deed, or other instrument. A person or entity
whose rights are affected by the filing of a lien , deed, or
other instrument may petition a recording official judge of
probate to nullify or expunge the filing. If a lien , deed, or
other instrument is recorded with more than one recording
official judge of probate , then the petitioner may file such a
petition with any such recording official judge of probate ,
but may file only one such petition , and any decision rendered
on that petition in accordance with the procedures outlined in
this subsection shall be equally applicable to all other
filings. Such The petition shall be in writing and sworn under
oath and based upon the personal knowledge of the petitioner.
A copy of such the petition shall be delivered via certified
and first class mail to the person or entity who filed the
lien, deed, or other instrument or who claims the rights or
interests thereby at an address shown on the lien , deed, or
other instrument.
(2) Within 14 days of the filing of such a petition
pursuant to subdivision (1) , the recording official judge of
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pursuant to subdivision (1) , the recording official judge of
probate shall give written notice of the filing of the
petition to the person or entity who filed the lien , deed, or
other instrument or who claims the rights or interests
thereby. Such The notice shall be sent by certified and first
class mail, shall be deemed delivered when placed in the mail,
and shall state that any additional proof of the validity of
the lien , deed or other instrument shall be filed with the
recording official judge of probate within 14 days of the date
of mailing the notice and that the failure to do so could
result in the lien , deed or other instrument being nullified
or expunged. The judge of probate's written notice may be
waived upon submission to the recording official of a written
waiver of notice, sworn to by the person who filed the false
or fraudulent lien, deed, or other instrument, or who claims
rights or interest under the document.
(3) If the recording official judge of probate does not
grant the petition within 28 days of the date that it is
filed, the petition shall be deemed denied. An order granting
or denying a petition, if rendered, shall be delivered to the
parties by the recording official judge of probate by
certified first class mail, but shall not be enforced, acted
upon, or effective before the expiration of 28 days from the
date of mailing or the final adjudication of any and all
appeals of that decision, at which time any final order
granting the petition shall be recorded and indexed in order
to provide notice that the lien , deed, or other instrument has
been nullified or expunged.
(4) A final order granting the petition shall: (i)
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(4) A final order granting the petition shall: (i)
state the names of the persons referenced in the false or
fraudulent lien, deed, or other instrument; (ii) state the
indexing and recording information for that lien, deed, or
other instrument; and (iii) declare that the false or
fraudulent lien, deed, or other instrument is nullified and
expunged.
(5) A party may appeal the decision of the recording
official judge of probate to the circuit court of any county
where the lien , deed, or other instrument was filed or to the
Circuit Court of Montgomery County, Alabama. Such appeals An
appeal must be filed within 28 days of the recording official
judge of probate's order or deemed denied. Such appeals
Appeals shall be filed and commenced as a civil action under
the Alabama Rules of Civil Procedure, which shall otherwise
apply to such actions on appeal. A notice of the appeal shall
also be filed with the recording official judge of probate ,
who shall file the notice as a lis pendens filing. The appeal
shall be de novo by the circuit court without a jury. The
prevailing party on appeal shall be entitled to a judgement
against the other party for the prevailing party’s attorneys
fees and expenses arising out of and relating to the appeal,
and court costs shall be taxed against the non-prevailing
party. The remedy and procedure provided in this subsection is
not exclusive or mandatory. Nothing in this subsection shall
prevent the enforcement or challenge of any recorded lien or
instrument as may otherwise be allowed by law. Nothing in this
section alters or modifies any other requirements for the
filing, enforcement, or challenge of any lien , deed, or other
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filing, enforcement, or challenge of any lien , deed, or other
instrument required or allowed by law."
"§13A-9-22
(a) A person commits the crime of fraudulent sale or
lease of residential real property if , with intent to defraud,
he or she does either of the following:
(1) Lists or, advertises , or causes to list or
advertise residential real property for sale knowing that he
or she or the purported seller has no legal title or authority
to sell the property.
(2) Rents or, leases , or causes to rent or lease
residential real property to another person knowing that he or
she or the purported lessor has no legal ownership or other
authority to lease the property.
(b) Fraudulent sale or lease of residential real
property is a Class A misdemeanor D felony .
"§36-20-73
(a) Notaries public may do all of the following:
(1) Administer oaths in all matters incident to the
exercise of their office.
(2) Take the acknowledgment or proof of instruments of
writing relating to commerce or navigation and certify the
same and all other of their official acts under their seal of
office.
(3) Demand acceptance and payment of bills of exchange,
promissory notes, and all other writings which are governed by
the commercial law as to days of grace, demand, and notice of
nonpayment and protest the same for nonacceptance or
nonpayment and to give notice thereof as required by law.
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nonpayment and to give notice thereof as required by law.
(4) Exercise such other powers, according to commercial
usage or the laws of this state, as may belong to notaries
public.
(b) No notary public shall be obligated to perform a
notarial act if he or she has a reason to believe the act is:
(1) For a transaction that the notary public knows or
suspects is illegal, false, or deceptive;
(2) For an individual who is being coerced; or
(3) For an individual whose demeanor causes compelling
doubts as to whether the person knows the consequences of the
transaction requiring the notarial act. "
"§36-20-73.1
(a) Except as otherwise provided in this section, any
signature acknowledged by a notary public shall be executed
within this state and shall be executed in the physical
presence of the notary public at the time of the
acknowledgment, only after the notary public has positively
identified the prospective signatory via personal knowledge of
the prospective signatory or the examination of photo
identification issued by a governmental entity or agency.
(b) For the purposes of this section, the following
terms shall have the following meanings:
(1) ORIGINAL SIGNATURE. A signature signed directly
onto a document in wet ink by an individual who is named on
the document.
(2) SIGNATORY. The individual who is named on the
document and is to sign the document.
(c) Unless otherwise provided by law, the powers and
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(c) Unless otherwise provided by law, the powers and
functions of a notary public require his or her original
signature.
(d) For purposes of this article, and subject to
subsections (e) to (g), inclusive, an individual may
personally appear before an acknowledging notary by either of
the following:
(1) Physically appearing before the notary as provided
in subsection (a).
(2) Appearing through the use of two-way audio-video
communication technology that allows a notary public and a
remotely located signatory to communicate with each other
simultaneously by sight and sound, provided that : (i) the
notary public is physically located in this state ; and (ii)
the two-way audio-video communication is recorded and
maintained for a period of seven years by the notary public.
(e) All of the following shall occur prior to the
performance of a remote electronic notarial act:
(1) If appearing through the use of two-way audio-video
communication, the The identity of the signatory shall be
verified by the notary public using either of the following
methods:
(1)a. The personal knowledge of the notary public of
the identity of the signatory.
(2)a.b.1. The presentation of two valid forms of
government issued identification, one of which shall include
the face and signature of the signatory ; and.
b.2. A process by which the notary public verifies the
identity of the signatory through a review of public or
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identity of the signatory through a review of public or
private data sources.
(2) The remote notary shall verify that the remotely
located signatory does not appear, in the judgment of the
electronic notary, to be incompetent, lacking in understanding
of the nature and consequences of the transaction requiring
the notarial act, or acting involuntarily, under duress, or
under undue influence.
(3) The notary shall verify the identity of the
remotely located signatory pursuant to this section.
(4) The notary shall inform the participants that
Alabama law requires that a recording be made of the remote
electronic notarization.
(5) The remotely located signatory must be located
within the United State of America.
(f) TheA two-way audio-video communication recording
shall contain all of the following:
(1) The date and time of the remote notarial act.
(2) A description of the documents to which the remote
notarial act relates.
(3) An attestation by the notary public of being
physically located in this state.
(4) A description of how the identification of the
signatory was verified.
(5) A clear image of any government issued
identification, if applicable.
(6) A clear image of the act of signing observed by the
notary public.
(g) The official date and time of the notarization is
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(g) The official date and time of the notarization is
the date and time the notary public witnessed the signature,
including the date and time the signature was witnessed via
two-way audio-video communication technology. All documents
used during the two-way audio-video communication, shall be
provided to the notary public for his or her authentication
and original signature.
(h) An electronic notary shall refuse to perform a
remote electronic notarial act if either of the following
applies:
(1) The electronic notary has reasonable grounds to
believe the remotely located signatory appears in the judgment
of the electronic notary to be incompetent, lacking in
understanding of the nature and consequences of the
transaction requiring the notarial act, or acting
involuntarily, under duress, or under undue influence.
(2) The electronic notary becomes aware that the
communication technology is not secure or the image presented
of the signatory appears to be artificially generated.
(h)(i) Any action taken before July 1, 2021, allowing
for the remote notarization of signatures under the Emergency
Management Act of 1955, Article 1 of Chapter 9 of Title 31, is
ratified and confirmed.
(i)(j) Remote notarization may not be used to notarize
an absentee ballot application or an absentee ballot
affidavit, or for any purpose related to voting."
Section 5. This act shall become effective on October
1, 2026.
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1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Judiciary
................12-Feb-26
Read for the second time and placed
on the calendar:
0 amendments
................11-Mar-26
Read for the third time and passed
as amended
Yeas 104
Nays 0
Abs 0
................17-Mar-26
John Treadwell
Clerk
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