Legislation to put more verification requirements on property title transactions in Alabama is expected in the 2026 session.
Sen. Arthur Orr, R-Decatur, is working on a draft bill he hopes will help prevent title fraud. The proposal requires more notarization of documents and lays out legal recourse for property fraud victims.
“It seems that there are things we can do in Alabama to better secure property ownership titles, some that other states have done,” Orr said.
The draft also puts restrictions on unsolicited real estate offers, in which people are contacted by those offering to buy property, often for prices well below market value.
Orr said his fear is unsophisticated and elderly landowners who don’t know the worth of their property could be preyed upon.
“They are not sure of the value, and these many times out of state companies try to come in and scoop it up, dirt cheap with a very, very unfair offer.”
He said it must be working because he’s hearing of more such contacts.
This at least begins a conversation, Orr said about the bill.
Title fraud is a growing issue nationwide. Criminals can impersonate property owners in order to take out additional loans against the home’s equity or even try to sell the property.
Amanda Senn, director of the Alabama Securities Commission, said the office recently began seeing reports of a particular type of real estate scam referred to as an absentee landowner, or vacant property scam.
“These scams involve fraudulent listings of real estate by fraudsters who attempt to impersonate the true owner,” Senn told ADN. “Fraudsters gather public information to impersonate the property owner and secure a listing with a real estate agent. A for sale sign then goes up and an online property listing is posted, all unbeknownst to the rightful owner.”
Senn said there was a recent report where the true owner only became aware of the scam when she drove past her property and saw the for sale sign.
It’s a legal nightmare for property owners who have had property sold out from under them, requiring legal recourse to enforce their rights, Senn said.
The new law went into effect in Georgia this year to put more requirements on confirming a person’s identity when he or she files a title deed and other real estate and personal property records. The Peach State also requires unsolicited real estate offers to clearly say in writing they may be below market value.
To the north, Tennessee law allows homeowners the right to cancel the sales contract on unsolicited offers and imposes specific requirements on offers and the conditions for acceptance.
The Alabama Association of Realtors has a page warning of title fraud on its website.
“We are very interested in finding a solution to this which protects property owners and protects purchasers of property in Alabama,” Jeremy Walker, the association’s executive director, told ADN.
The 2026 legislative session starts Jan. 13.
This story is from aldailynews.com.
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