SB170 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Del Marsh
Republican
Co-Sponsor: T.D. “Ted” Little
Session: Regular Session 2010
Title: Residential Mortgage Satisfaction Act, method for clearing residential land titles for subsequent transactions, self-help title clearing remedy using affidavit of satisfaction and satisfaction agent, document of rescission by secured creditor to rescind erroneous recording of a mortgage, Secs. 35-10B-101 to 35-10B-104, inclusive, 35-10B-201 to 35-10B-205, inclusive, 35-10B-301 to 35-10B-308, inclusive, 35-10B-401, 35-10B-402 added, Secs. 35-10-26, 35-10-30 am'd. (2010-20614)
Summary: SB170 creates the Alabama Residential Mortgage Satisfaction Act to set a uniform process for clearing residential property titles after mortgage payoff, including payoff statements, timely recording of satisfactions, and self-help remedies using affidavits of satisfaction and a rescission document.
What This Bill Does
It establishes a standardized method for obtaining payoff information from secured creditors and requires those creditors to respond within 30 days and record satisfactions within 30 days of payment. It provides damages and penalties for late or incomplete responses, and creates a self-help title-clearing mechanism using an Affidavit of Satisfaction aided by a Satisfaction Agent. It also allows for a Document of Rescission to correct erroneous mortgage satisfactions and outlines liability rules for parties involved in erroneous recordings.

Who It Affects
Landowners or other persons entitled to record a mortgage satisfaction who will request payoff statements, receive timely responses, and have a clearer path to clearing titles after payoff.
Secured creditors (lenders) and their agents (including satisfaction agents and title insurers or attorneys) who must issue payoff statements, record satisfactions, may face damages or liability for noncompliance, and may use affidavit-based remedies under supervision of the act.

Key Provisions
Adopts the Alabama Residential Mortgage Satisfaction Act as Chapter 10B, defining terms and creating a uniform framework for clearing residential land titles.
Payoff statement process: entitled persons may request a payoff statement; secured creditors must respond within 30 days and send the statement to the entitled person or their authorized agent, including required details about the secured obligation and property.
Recording requirements and damages: secured creditors must record satisfactions within 30 days of payment; penalties include actual damages and statutory damages (up to $500) for failure to comply, with additional remedies for noncompliance under specified circumstances.
Document of rescission: allows a secured creditor to record a document of rescission to correct an erroneous recorded satisfaction without eliminating other rights; creates liability for wrongful recording and preserves priority rights of other parties.
Self-help title clearing: introduces a remedy using Affidavits of Satisfaction and a Satisfaction Agent (title insurer or attorney) to facilitate recording when the creditor has not timely responded, including required notifications and procedures for execution and recording.
Affidavit of satisfaction provisions: content requirements, authorization process for satisfaction agents, notification duties, timing to record, and conditions under which an affidavit may be signed and recorded; outlines the role of assignees and required notices to identified parties.
Liability and safeguards: sets liability rules for satisfaction agents and related parties, permits punitive damages for certain willful misconduct, and allows court action for damages; provides protections and limits on liability in specific scenarios.
Amendments and implementation: amends 35-10-26 and 35-10-30 to align existing code with the act's framework; establishes an effective date (January 1, 2011) and references alignment with uniform act principles.
Administrative and relational provisions: includes references to uniformity of application and relation to electronic signatures acts, ensuring compatibility with state and federal signature standards.

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