HB184 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Todd Greeson
Republican
Session: Regular Session 2011
Title: Real property, deeds and other instruments, transfer fee obligations prohibited, enforcement, procedures related to prior transfer fee obligations, Secs. 35-4-431 to 35-4-436, inclusive, added
Summary: HB184 would ban private transfer fee obligations, render new ones unenforceable, and require specific notice and disclosure rules for pre-existing obligations in Alabama real estate transactions.
What This Bill Does
The act prohibits creating private transfer fee obligations and states that any new obligations recorded after the act’s effective date do not run with the property title and are void. It requires sellers to disclose any private transfer fee obligation in real estate contracts and outlines buyer remedies if disclosure is missing. It also imposes liability for violations by those who record such obligations and sets detailed notice procedures for pre-existing obligations, including deadlines and required information.

Who It Affects
Property buyers and sellers: must handle disclosures in real estate contracts, may recover damages or deposits if a private transfer fee obligation is not disclosed, and may have the property conveyed free of such fees under certain conditions.
Private transfer fee payees (e.g., homeowners associations, developers, or other organizations that would receive the fee): must file a formal Notice of Private Transfer Fee Obligation for pre-existing fees, face liability for violations after the act, and are subject to specific filing and notice requirements.

Key Provisions
Prohibits creation of private transfer fee obligations and voids those recorded after the act's effective date; such obligations do not bind future owners.
Defines key terms (PRIVATE TRANSFER FEE, PAYEE, PRIVATE TRANSFER FEE OBLIGATION) and lists numerous carve-outs (e.g., seller paid consideration, broker commissions, mortgage-related fees, lease-related charges, taxes, HOA/association fees, club memberships).
Requires real estate contracts to disclose the existence and terms of any private transfer fee obligation and grants remedies to buyers if disclosure fails.
Imposes liability for damages, costs, and attorney fees on anyone who records or enters into a private transfer fee obligation after the act, with liability potentially assigned to principals if an agent acts for a principal.
For pre-existing fees, requires the payee to file a detailed Notice of Private Transfer Fee Obligation with the probate office by December 31, 2011, including amount or basis, expiration, purpose, payee contact, legal description, and designation of a single payee.
If the payee fails to file the notice by the deadline or to provide requested written statements, the grantor may convey the property free of the fee, rendering the obligation void.
Allows amendments to the notice and requires accompanying affidavits to be recorded; licensees have no duty to discover private transfer fee obligations.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal