Alabama law, effective October 1, 2026

Somebody can try to sell a house they do not own. Alabama just made that harder.

A plain-English guide to the Alabama Property Protection Act for owners in Mobile, Baldwin County and the Gulf Coast. What it does, who it protects, and what changes the next time you sell or lease.

The short version

  • What it is. The Alabama Property Protection Act, passed as SB292. It targets seller impersonation: somebody posing as a property owner and selling or leasing a property that is not theirs.
  • When it started. October 1, 2026.
  • Who it matters most to. Owners of property they do not live in. Vacant land, an inherited house standing empty, a rental managed from out of state.
  • What you will notice. More identity checks, in more places, at more points in a transaction. Some of them will be asked of you.

The problem it was written to solve

Property fraud of this kind does not look like a break-in. It looks like paperwork.

Someone identifies a property with an absent owner, usually vacant land or a house nobody is living in. They pose as that owner, list it, and run the whole transaction remotely. Nobody ever meets face to face. By the time the real owner finds out, a deed has been recorded and money has moved.

The properties that get targeted have a pattern: no one is there to notice. That is why land, inherited houses and out-of-state rentals come up again and again.

What the Act actually does

Four mechanisms, and they work at different points in a transaction.

1. Your agent has to know who you are

Under Section 35-21-5(a), a licensee may not enter into an agreement to sell or lease real property when the seller is unknown to the agent and is not physically present, unless that seller provides government-issued identification and ownership records.

Note that it covers leases as well as sales. Compliance documentation is kept for five years.

2. A second check before closing

Section 35-21-5(b) requires settlement agents to run identity document validation and identity verification of the seller before closing on class III property, which the Act describes as property that is vacant or not owner-occupied and carries no mortgage.

Class III is defined by cross-reference to Alabama's tax code, so whether a specific property qualifies is a question for your closing attorney.

3. Listing sites have to check too

A new chapter covering online real estate platforms requires government ID and proof of ownership where a listing is placed under a direct contract with the owner and was not first listed with a licensed broker or an MLS.

In other words, the for-sale-by-owner route through a listing site now carries its own verification step.

4. Real consequences, and a way to undo the damage

The Act creates new felony offenses for fraudulent and aggravated fraudulent sale or lease of residential property, and for offering false instruments for recording.

It also lets the Alabama Securities Commission investigate and issue an order declaring a fraudulent conveyance void, and it establishes a Title Fraud Recovery Fund from forfeited proceeds. Civil penalties can reach $100,000 per transaction.

Who is most exposed

If any of these describe you, this law was written with your situation in mind.

  • You own land with nothing built on it.
  • You inherited a house and it is sitting empty while the family decides.
  • You own a rental out of state and have not stood on the property in a year or more.
  • A property is paid off, so no lender is watching the title.
  • You are handling property for an older relative. The Act treats fraud against owners aged 70 or older more severely.

None of that means anything has happened to you. It means the conditions that make a property attractive to this kind of fraud are the same conditions that describe ordinary, perfectly normal ownership.

What changes when you sell

Mostly one thing, and it is small: you will be asked to prove you are you.

If we have not met and you are not standing in front of us, we will ask for government-issued identification and records showing you own the property, before any listing or lease agreement is signed. If you are selling remotely, expect your closing attorney to ask again on their own account.

It is a few extra minutes. It is also the step that means nobody can do this to your property while you are three states away.

An agent who skips it is not doing you a favor. They are creating a problem for your transaction, and possibly for their license.

What the Act does not do

Worth being straight about the limits.

  • It does not monitor your deed for you or alert you when something is recorded.
  • It does not stop a fraudulent filing from being made. It creates penalties afterward and a route to have a conveyance declared void.
  • It does not change how you sell a home you actually live in. That transaction looks the same as it did in September.

If you want active monitoring, many Alabama probate offices offer a property fraud alert service. That is separate from this law and worth asking your county about.

What to do this month

  1. Know who is on the deed. Especially on inherited property where the estate was never fully settled. Fuzzy ownership is the hardest thing to prove quickly when you need to.
  2. Lay hands on the documents now. Deed, any estate paperwork, your identification. Finding them under pressure is how deals slip.
  3. Put eyes on a property nobody visits. A neighbor, a manager, somebody. The fraud depends on absence.
  4. Ask your county probate office about property fraud alerts. Free or near-free in most places.
  5. If you are selling, expect the ID step and bring it with you.

Questions we are getting

Does this mean my sale will take longer?

No. It adds a verification step, not a waiting period. The step takes minutes when your documents are in order, which is the real argument for gathering them before you list.

I am selling a house I live in. Does any of this apply to me?

Very little. The agent verification applies when a seller is unknown to the agent and not physically present. The settlement agent step applies to vacant or non-owner-occupied property with no mortgage. An owner-occupied sale sits outside most of it.

I own a rental in Mobile and live in another state. What should I expect?

Expect to be asked for identification and ownership records before a listing or lease agreement is signed, and to be asked again by the closing attorney if the property is vacant and unmortgaged. Plan for it rather than being surprised by it.

Is my inherited property at higher risk?

An empty house with unclear ownership has the two features this kind of fraud looks for. Settling the title and having someone check on the property are the two things that help most.

What if I think this has already happened to my property?

Contact the Alabama Securities Commission, which administers the Act and can investigate, and speak with a real estate attorney promptly. The Act gives the Commission authority to declare a fraudulent conveyance void, but that process starts with a report.

If one of these is your situation

Thinking about selling a property you do not live in?

Start with what it is worth and what your options actually are. No pressure, no obligation, and we will tell you when selling is not the best move.

What is my property worth? What would it rent for?

Prefer to talk it through? Call 251-202-2287.

General information, not legal advice. This page summarizes the Alabama Property Protection Act, effective October 1, 2026, in plain language. It is not a complete statement of the law and it is not a substitute for advice from an attorney about your situation. Statutory section references are to the Act as passed. Whether a particular property is class III property, and what any provision means for a specific transaction, are questions for a licensed Alabama attorney.

Read the Act: Alabama Securities Commission, the Alabama Property Protection Act. Published by 764 the Agency, LLC on October 25, 2026.