HB82 Alabama 2010 Session

Summary

Primary Sponsor

James E. Buskey

Democrat

Session

Regular Session 2010

Title

Uniform Residential Mortgage Satisfaction Act, uniform method for clearing residential land titles for subsequent transactions, Chapter 10B, Title 35 added, Secs. 35-10-26, 35-10-30 am'd.

Summary

The bill creates the Alabama Uniform Residential Mortgage Satisfaction Act to standardize how residential mortgage satisfactions are processed, paid off, and recorded to clear land titles for future transactions.

What This Bill Does

It establishes a uniform process for landowners or their authorized agents to request payoff statements from secured creditors, with notices that can be sent by mail, fax, or email. Secured creditors must issue a payoff statement within 14 days after a compliant notification and must record the satisfaction within 30 days after payment, or face damages. The act also creates a self-help title clearing remedy using an Affidavit of Satisfaction and a Satisfaction Agent, and allows a Document of Rescission to correct erroneous recordings. It also sets penalties, liability rules, and fee guidelines, and updates related Alabama code sections to match the new chapter; the act takes effect January 1, 2011.

Who It Affects

• Landowners or other entitled persons who have paid off a mortgage and want the mortgage satisfaction recorded to clear their property's title (and their authorized agents).
• Secured creditors (lenders) who hold the mortgage or security interest and must respond to payoff requests, record satisfactions, and may face penalties for delays or erroneous filings.

Key Provisions

• Creates Chapter 10B under Title 35, Alabama Code, to provide a uniform method for clearing residential land titles after payoff.
• Payoff statement process: entitled person may notify creditor of the payoff date by ordinary mail, fax, or email; creditor must issue payoff statement within 14 days and send it to the designated recipient.
• Satisfaction recording: secured creditors must record the mortgage satisfaction within 30 days of full payment; if not, damages may be awarded (actual damages plus up to $500 and attorneys' fees in some cases).
• Self-help title clearing: allows a Satisfaction Agent or an Affidavit of Satisfaction to be used to clear title without waiting for the creditor, subject to rules; includes a Document of Rescission to correct mistaken recordings.
• Liability and penalties: provides limited liability for satisfaction agents if they follow procedures and the creditor is at fault; allows damages and attorney fees; actions must be in the county where the security instrument is recorded.
• Amendments and effective date: updates Sections 35-10-26 and 35-10-30 to conform to the new chapter; effective date is January 1, 2011.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal