AL HB426

Creates the Alabama Property Protection Act of 2026, establishing best practices for title agents, attorneys, real estate agents, and notaries to verify property owner identity and prevent title fraud when owners are not physically present at transactions

Establishes the Alabama Title Fraud Recovery Fund administered by the Alabama Securities Commission, which can impose civil penalties up to $1,000,000 per fraudulent transaction and compensate victims of title fraud

Upgrades fraudulent sale or lease of residential real property from a Class A misdemeanor to a Class D felony; creates new crime of aggravated fraudulent sale (involving funds received or elderly victims 70+) as a Class C felony

Requires online real estate platforms to verify owner identity and proof of ownership before publishing listings not represented by licensed agents; mandates removal of interior photos within 30 days of sale or owner request

Creates expedited quiet title process for fraud victims with preliminary hearing within 30 days; allows recovery of attorney fees when defendant fraudulently created the challenged instrument; requires notarization of all real property conveyances and increases ID requirements for recording documents