SB178 Alabama 2011 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Del Marsh
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: SB178 would prohibit private transfer fee obligations from binding Alabama real property titles and void those recorded on or after the act’s effective date, while requiring disclosures and notices for existing obligations.
What This Bill Does
It bans private transfer fee obligations from running with the title or being enforceable against future owners. Any such obligation recorded on or after the effective date is void. The bill imposes disclosure requirements in real estate contracts and allows buyers to recover damages if disclosure is missing. For preexisting obligations, the bill requires payees to file notices by December 31, 2011; if they fail, the property may be conveyed free of the fee and the obligation void.

Who It Affects
Property buyers and sellers: they would benefit from protection against ongoing or future private transfer fee obligations and would have remedies if such fees are not properly disclosed in real estate contracts.
Private transfer fee payees (often homeowners associations or developers) and real estate transaction participants: payees must file required notices for preexisting obligations and may face damages or other remedies if they impose fees after the act or fail to disclose; licensees have limited duties regarding discovery of such obligations.

Key Provisions
Prohibits private transfer fee obligations recorded on or after the act’s effective date from binding future owners and declares such obligations void.
Defines key terms: association, payee, private transfer fee, private transfer fee obligation, and transfer.
Requires real estate contracts to disclose the existence and details of any private transfer fee obligation and makes non-disclosure unenforceable, with buyer remedies for non-disclosure.
Establishes liability for damages, costs, and attorney fees for violations; assigns liability to principals if agents act on their behalf.
Imposes notice requirements for existing obligations: payees must file a Notice of Private Transfer Fee Obligation by December 31, 2011 with specific content.
If payees fail to file or provide required information, property may be conveyed free of the fee and the obligation is void; affidavit procedures are provided to establish noncompliance.
Real estate licensees have no duty to discover private transfer fee obligations.

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