House Bill 426 Alabama 2026 Session

Updated Mar 31, 2026

High Interest

Summary

Primary Sponsor: Paul W. LeeRepresentative
Republican
Session: 2026 Regular Session
Title: Real property; creation of the Alabama Property Protection Act of 2026, title fraud prevention
Summary: HB426 creates the Alabama Property Protection Act of 2026 to prevent title fraud, establish remedies and a Title Fraud Recovery Fund, expand enforcement, and add online platform verification and expedited title actions.
What This Bill Does
It gives the Alabama Securities Commission authority to investigate title fraud, void fraudulent real estate conveyances, and impose civil penalties; proceeds go into the Alabama Title Fraud Recovery Fund to compensate injured property owners. It requires settlement agents to verify a seller’s identity before closing and keep related documentation for five years, and it creates a statewide real property owner notification system. It creates an expedited quiet title process with court remedies and penalties for fraudulent sales or false instruments, plus de novo appeals in circuit court. It adds a Chapter 19J to regulate online real estate platforms to verify ownership before listing, allow removal of interior photos on owner request within 30 days, and provide a rebuttable presumption of platform reasonableness, with a future effective date and notary modernization included.

Who It Affects
Real property owners who could be victims of title fraud and may receive compensation from the Title Fraud Recovery Fund
Settlement agents and licensed real estate brokers who must verify seller identity and maintain records
Probate judges who will administer the property owner notification system
Online real estate platforms that must verify ownership before listing and may be penalized for noncompliance
Notaries public who will have updated remote notarization rules
Banks, credit unions, title insurers, and some government entities which are exempt from certain civil penalties

Key Provisions
Establishment of the Alabama Property Protection Act of 2026 and transfer of enforcement to the Alabama Securities Commission (ASC) with authority to investigate, issue orders, and impose penalties.
Creation of the Alabama Title Fraud Recovery Fund (administered by ASC) to compensate real property owners for actual damages from title fraud; penalties can be up to $100,000 per transaction and proceeds are not to include interest or court costs.
Requirement for settlement agents to verify seller identity before closing and maintain documentation for five years; creation of a real property owner notification service.
Expedited quiet title provisions empowering faster resolution of title disputes and allowing enforcement through circuit court with de novo review for appeals.
New criminal offenses related to title fraud, including aggravated fraudulent sale or lease of residential property and offering false instruments for recording, with specified felony/misdemeanor classifications.
Chapter 19J establishing online real estate platform verification requirements for listings, removal rights for interior photos, and a rebuttable presumption of platform reasonableness; includes a four-year statute of limitations for actions against platforms and limits on platform liability for certain listings.
Notary law updates to permit remote electronic notarization with identity verification and recordkeeping, plus safeguards and restrictions (including a prohibition on remote notarization for voting) and modernization of notary duties.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 17, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property & Estates