Legislative Update-Alabama Property Protection Act

By: D. Edgar Black, Black and Hughston, LTAAL Legislative Chair

Alabama Property Protection Act Advances: Conference Committee Likely as Session Nears End

Both chambers of the Legislature have now passed engrossed versions of the Alabama Property Protection Act of 2026 (HB426 and SB292), marking a significant step forward in addressing seller impersonation and other forms of title fraud. The two bills are closely aligned in structure and intent. Each creates a new statutory framework empowering the Alabama Securities Commission to investigate fraudulent conveyances, issue administrative orders (including voiding deeds), and administer a Title Fraud Recovery Fund. Both versions also impose new identity verification requirements in certain transactions, establish expedited quiet title procedures, and place verification obligations on certain online real estate platforms. The Land Title Association of Alabama has endorsed the legislation, along with the Alabama Association of Realtors and the Southeastern Land Title Association.

While the overall framework is consistent, a few differences remain. The Senate version permits online platforms to rely on a broader set of ownership documentation—including a last will and testament—while the House version narrows acceptable documentation to more traditional title-related records. SB292 also includes a four-year limitation period for initiating certain civil penalties, which does not appear in HB426.

Because the House and Senate have not passed identical versions, the legislation must now be reconciled before it can be sent to the Governor. The most likely next step is the appointment of a conference committee, which will work to resolve the remaining differences and produce a single compromise version. That conference report must then be adopted, without amendment, by both chambers.

Timing will be critical. With only five legislative days remaining in the current session, the opportunity to appoint a conference committee, reach agreement, and secure final passage is limited. Although the differences between the bills are relatively narrow, any delay could push final consideration beyond the end of the session, requiring the legislation to be reintroduced next year.

If a compromise is reached and adopted in time, the final bill will be enrolled and sent to the Governor for consideration. At this stage, the primary issue is not substantive disagreement, but whether the Legislature can complete the reconciliation process within the remaining legislative days.