SB188 Alabama 2013 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Co-Sponsor

Arthur Orr

Session

Regular Session 2013

Title

Mortgage, limitation on recording mortgages, Sec. 35-4-51 am'd.

Summary

SB188 limits when a mortgage can be a lien and requires lenders to notify borrowers within 30 days of assignments.

What This Bill Does

It states that a mortgage or deed of trust not recorded within six years of its execution may not attach as a lien on the property unless the borrower agrees to record after the six-year period. It also requires the mortgagee or beneficiary to provide written notice to the mortgagor or trustor within 30 days of an assignment, and if this notice is not given, the mortgage or deed of trust may not attach as a lien. The changes modify Section 35-4-51 and take effect after the governor approves the act.

Who It Affects

• Mortgagors/trustors (property owners): protections against old, unrecorded mortgages becoming liens after six years, and protection if assignment notices are not sent promptly.
• Mortgagees/beneficiaries (lenders): must issue written assignment notices within 30 days, or risk their lien not attaching to the property.

Key Provisions

• A mortgage or deed of trust not recorded within six years of its execution may not attach as a lien unless the mortgagor/trustor agrees to record after the expiration of the recording period.
• Mortgagees or beneficiaries must provide written notice of the assignment of the mortgage or deed of trust to the mortgagor/trustor within 30 days of the assignment.
• If the notice of assignment is not provided within 30 days, the mortgage or deed of trust may not attach as a lien on the mortgagor's/trustor's property.
• The act amends Section 35-4-51 and becomes effective on the first day of the third month after passage/approval by the Governor.

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

Subjects

Mortgages