SB441 Alabama 2010 Session

Summary

Primary Sponsor

T.D. “Ted” Little

Democrat

Co-Sponsor

Wendell Mitchell

Session

Regular Session 2010

Title

Real property, transfer fee covenant, void and unenforceable unless notice recorded in certain format, requirements for notice of transfer fee

Summary

The bill makes transfer fee covenants void unless a specific notice is recorded and sets detailed requirements for those notices.

What This Bill Does

It voids transfer fee covenants that lack a required notice. Existing covenants recorded before May 11, 2010 become void if no notice is filed by January 1, 2011, while covenants recorded on or after May 11, 2010 must include and have a notice filed in the probate judge's office at the time of recording. Notices must be titled 'Payment of Transfer Fee Required' and include owner names, property description and tax ID, the fee amount or percentage, residential cost examples for common price levels, and any expiration details. The bill also clarifies that covenants do not apply to court-ordered or government-imposed obligations. It becomes effective on the first day of the third month after the bill is passed.

Who It Affects

• Property owners, buyers, and sellers whose real estate is subject to a transfer fee covenant; their ability to enforce or be charged the transfer fee depends on whether the required notice is recorded.
• County officials (probate judges and county recorders) who must record and maintain the transfer fee notices in the appropriate offices.

Key Provisions

• Definitions of key terms used in the act, including affected property, applicable county recorder, existing transfer fee covenant, transfer fee, and transfer fee covenant.
• Existing transfer fee covenants recorded before May 11, 2010 are void and unenforceable unless a notice described in Section 3 is recorded in the probate judge's office before January 1, 2011.
• Transfer fee covenants recorded on or after May 11, 2010 are void and unenforceable unless, at the time of recording, a notice described in Section 3 is submitted for recording in the office of each applicable probate judge.
• Notice requirements: each notice must be titled 'Payment of Transfer Fee Required' in at least 14-point bold type and include owner names, legal description and tax ID, the dollar amount or percentage of the transfer fee, residential cost examples for specific property prices, and any expiration date or circumstances.
• Effective date: the act takes effect on the first day of the third month after passage and approval by the Governor.
• Exclusions: the transfer fee covenant does not include obligations imposed by a court judgment, or by the federal, state, or local government.

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