Alabama Passes Sweeping Property Fraud Prevention Law

New legislation aims to protect homeowners from title theft and fraudulent real estate transactions.

Apr. 10, 2026 at 1:36pm

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A serene, nostalgic painting of an old 'For Sale' sign on a residential property, with the sign and surrounding area bathed in warm, golden sunlight and deep shadows, conveying a sense of quiet unease about property ownership.The Alabama Property Protection Act aims to curb a rise in fraudulent real estate transactions that have left many homeowners vulnerable to having their property stolen.Montgomery Today

The Alabama legislature has passed the Alabama Property Protection Act, a comprehensive new law that requires additional identity verification and oversight in real estate transactions to combat the growing problem of property title fraud. The bill, which now heads to Governor Kay Ivey's desk for signature, establishes new requirements for real estate agents, settlement agents, and notaries to confirm the identity and ownership status of sellers before facilitating a sale.

Why it matters

Property title fraud has emerged as an increasingly common crime, with scammers falsely representing themselves as owners and selling or encumbering real estate they do not actually own. This can leave unsuspecting buyers and existing homeowners vulnerable to losing their property. The new Alabama law aims to create more robust safeguards in the real estate system to protect against these fraudulent activities.

The details

Senate Bill 292, known as the Alabama Property Protection Act, requires real estate agents and brokers to obtain government-issued identification and property ownership records before agreeing to sell or lease real estate when the seller is unknown or not physically present. Settlement agents must also conduct identity and ownership verification prior to closing on certain types of vacant properties. The legislation also enhances notary requirements and gives authorities more power to investigate and enforce against fraud.

  • The Alabama House passed the bill on April 10, 2026.
  • The bill now heads to Governor Kay Ivey's desk for signature, as the last day of the legislative session was April 10.

The players

Sen. Arthur Orr

The Republican state senator from Decatur who sponsored the Alabama Property Protection Act.

Rep. Paul Lee

The Republican state representative from Dothan who carried the companion bill in the House.

Jeremy Walker

The executive director of the Alabama Realtors Association, which supported the legislation.

Alabama Securities Commission

The state agency that will be granted more authority to investigate and enforce against property fraud under the new law.

Governor Kay Ivey

The governor of Alabama who is expected to sign the Alabama Property Protection Act into law.

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What they’re saying

“It's an emerging crime that people are very unaware of, because our system is based on 20th-century honesty and integrity among the public. And now, with fraudsters becoming more and more brazen and abundant, they're using our outdated system to basically steal the titles to property then flip them very quickly to unwitting buyers.”

— Sen. Arthur Orr, State Senator

“People are actually going in and they don't even live in the country, they are trying to slip in and buy land without you knowing it. People that are actually the target are those that have a home paid for, they're the hottest target I might say... Those people come in and actually make a quick buy and the people that own the property have no idea that's taken place until much later, until they see some sort of activity on the property.”

— Rep. Paul Lee, State Representative

“Sen. Orr and Rep. Lee have provided great leadership in advancing protections for Alabama property owners. A broad coalition of stakeholders helped strengthen this legislation into one of the most comprehensive title fraud bills in the country.”

— Jeremy Walker, Executive Director, Alabama Realtors Association

What’s next

Governor Kay Ivey is expected to sign the Alabama Property Protection Act into law in the coming days, as it was passed by the legislature on the final day of the session.

The takeaway

This new law represents a significant step forward in combating the growing problem of property title fraud in Alabama. By establishing more robust identity verification requirements and enforcement mechanisms, the state aims to protect homeowners and buyers from falling victim to these sophisticated real estate scams.