HB 426 Alabama House · 2026 Regular Session

Real property; creation of the Alabama Property Protection Act of 2026, title fraud prevention

HB 426, the Alabama Property Protection Act of 2026, creates new rules to prevent title fraud in real estate transactions. It requires real estate agents, online platforms, and title professionals to verify property ownership before listings or transfers, prohibits remote notarization for property deeds in certain cases, and establishes a recovery fund for victims. The bill upgrades fraudulent property sales to a Class D felony and creates a new aggravated fraud offense classified as a Class C felony. It also sets up an expedited process for victims to reclaim property and recover legal costs through the Alabama Securities Commission.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 12, 2026 Last action Mar 31, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 5 edits · Mar 17, 2026

MODERATE

The bill was updated from its initial introduction to its final engrossed version, incorporating significant policy expansions and clarifications. The most notable change is the addition of a consumer administrative complaint process and investigative authority for the Alabama Securities Commission, allowing them to void fraudulent conveyances. The bill also expanded enforcement powers to include criminal prosecution by the commission and clarified that forfeited funds from fraud will not include legitimate lender payments or government fees. Additionally, the text was refined to explicitly allow judges of probate to establish owner notification services and to clarify the classification of fraudulent sale crimes.

Scope change

The bill's scope expanded from general best practices to include specific administrative enforcement mechanisms and a formal complaint process managed by the Alabama Securities Commission.

ENFORCEMENT

Added authority for the Alabama Securities Commission to investigate complaints, adopt rules, and prosecute criminal violations related to title fraud.

REQUIREMENT

Established a formal consumer administrative complaint process through the Alabama Securities Commission to handle allegations of fraud.

Explicitly authorized judges of probate to establish a real property owner notification service to alert owners of potential fraud.

FISCAL

Clarified that forfeiture of proceeds from fraudulent conveyances excludes legitimate bank fees, government fees, and loan payments to lenders.

TECHNICAL

Updated bill text to include specific code section amendments for expedited quiet title actions and expungement of fraudulent documents.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 31, 2026

Upper · Passed

Pending Committee Action in Second House (Judiciary)

upper

Mar 17, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 940

lower

Mar 17, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 939

lower

Mar 17, 2026

Introduced

Judiciary 1st Substitute Offered (Judiciary)

lower

Mar 11, 2026

Lower · Passed

Reported Out of Committee House of Origin

lower

Feb 12, 2026

Lower · Passed

Pending Committee Action in House of Origin (Judiciary)

lower

1 primary · 0 co-sponsors