ALABAMA PROPERTY PROTECTION ACT EFFECTIVE OCTOBER 1, 2026
By: Hayes Ellett, Area Counsel, Fidelity National Financial
Quick Summary of What Settlement Agents Need to Know
Trigger:
• Only for Class III property, vacant or non-owner-occupied and unencumbered property
Document Validation:
• Unexpired government ID with photo, name and address
• Check expiration, photo, security features and alteration
• Confirm deed, recorder records or title history match the seller
Identify Verification Tools:
• Match the person to the ID, in person or by live video if remote
• Corroborate against public or private data sources
• Use a verification service: CertifID, ClosingLock, Qualia Clear and/or your underwriter’s system
• Confirm representative authority and wire instructions by known number
Document the Decision:
• Record the validation and verification methods used
• Note discrepancies and how each was resolved
• Save service reports and screenshots to the file
• Retain the full compliance record for five years
Listen to your Gut:
• Notify your underwriter if any questions and don’t hesitate to stop the transaction if identity or ownership does not align
