Bill > HB426

This bill, titled the Alabama Property Protection Act of 2026, aims to prevent title fraud by establishing new procedures and responsibilities for various parties involved in real estate transactions. The Alabama Securities Commission (referred to as "the commission") is granted broad authority to investigate claims, administer the law, and enforce its provisions, including the power to issue administrative orders, subpoenas, and fines, and to seek court orders for relief. A key provision establishes the Alabama Title Fraud Recovery Fund to compensate victims of title conveyance fraud, with proceeds from fraudulent conveyances being forfeited to this fund. The bill also outlines "best practices" for real estate agents, title agents, attorneys, notaries public, and online real estate platforms to verify the identity of property owners and prevent fraudulent transactions, with adherence to these practices creating a rebuttable presumption of reasonable conduct. Furthermore, it mandates the creation of a statewide property notification alert system to inform owners of recordings made on their property and amends existing laws to enhance the expedited quiet title process for fraudulent conveyance allegations, clarify requirements for recording instruments, and strengthen penalties for fraudulent real estate activities. The act is set to become effective on October 1, 2026.

Justice

https://alison.legislature.state.al.us/bill-search