The Alabama Legislature convened its 2026 regular session last Tuesday. Just hours after the gavel fell, Gov. Kay Ivey delivered her final State of the State Address, highlighting recent accomplishments and outlining priorities she wants lawmakers to advance in the coming weeks.

On accomplishments, Ivey pointed to Rebuild Alabama funding supporting hundreds of road and bridge projects statewide, expanded rural broadband access, and continued economic development and job growth during her administration. She also highlighted improvements in education outcomes and continued expansion of Alabama’s First Class Pre-K program. The governor also provided updates on corrections, including progress on new prison facilities and recruitment of correctional officers.

Looking ahead, Ivey urged lawmakers to consider several key initiatives, including:

• Increased funding for the CHOOSE Act school choice program, raising total funding to $250 million, with an additional $50 million for K–12 school safety efforts 
• 2% pay raises for educators and state employees
• Policy and guidelines for $203 million in federal Rural Health Transformation Program funding
• Public safety proposals, including the Child Predator Death Penalty Act and legislation to strengthen penalties for individuals who attempt to elude law enforcement

The regular session has 27 legislative days remaining after both chambers met for three days last week. Legislative leaders have signaled a faster-than-normal pace so lawmakers can return to their districts to campaign well ahead of the May 19 party primary elections. As a result, more controversial or complex legislation could be harder to move this year, with lawmakers expected to focus on a narrower set of priority issues.

While the Alabama Constitution only requires lawmakers to pass balanced budgets before adjournment, a full slate of local bills, sunset measures, Senate confirmations, and other legislation is also awaiting action.

As legislators returned to the State House today, they were welcomed by hundreds of Alabama REALTORS® in Montgomery for REALTOR® Day at the Capitol. The event brings members together to hear updates from legislative leaders, constitutional officers, agency officials, and other voices in state government. Meetings with House and Senate offices, along with the legislative reception at AAR headquarters, are also part of the day’s activities.

House Bill 80, sponsored by Rep. Mack Butler (R–Rainbow City), was approved by the committee on the second day of the session. Current Alabama law does not require notice to tenants regarding personal property left behind after an eviction. HB 80 would require the district court to include notice that any abandoned property may be disposed of by the landlord, and the bill states the landlord has no obligation to preserve the property once it is removed. The legislation also provides civil immunity for landlords and officers for damage to a tenant’s personal property during execution of a writ of possession. 

Another bill to watch, House Bill 96 sponsored by Speaker Pro Tem Chris Pringle (R–Mobile), received a favorable report from the committee on Wednesday. The bill would increase the homestead exemption for seniors over 62 and for individuals with disabilities.

Both measures now move to the House floor for debate.

AAR is pursuing two complementary, consumer-focused legislative initiatives this session to strengthen property owner protections and market integrity. First, AAR is advancing targeted anti-fraud safeguards to combat seller-impersonation and title-related scams, including stronger identity verification standards and more secure government record-change processes. 

Second, AAR is supporting measures to curb deceptive real estate investment solicitations—particularly abusive wholesaling practices and unsolicited offers by requiring registration, clear disclosures, limits on repeated unsolicited contacts, and enforcement authority through the Alabama Securities Commission. 

Together, these proposals protect Alabama consumers from predatory actors, preserve property rights, and reinforce confidence in the real estate transaction system without imposing unnecessary burdens on legitimate professionals. 

Seller impersonation fraud is a scam affecting states across the country, and Alabama is no exception. Seller impersonation fraud occurs when criminals falsely represent themselves as property owners and list, sell, or encumber real estate they do not own. Victims often discover the fraud only after their property has been sold or their title clouded. Existing law largely addresses fraud after the damage is done, forcing rightful owners into lengthy and expensive litigation to recover their property. 

Alabama REALTORS® has joined with a group of interested stakeholders to explore state solutions to the scam and file legislation later this session. When filed, the bill is expected to establish a comprehensive framework to prevent seller impersonation fraud and other forms of title fraud, protect property owners, and provide swift remedies when real property is fraudulently conveyed.

When filed, the bill is expected to include the following key provisions:
 

1. Centralized Enforcement by the Alabama Securities Commission (ASC)
   • Grants the ASC exclusive authority to administer, investigate, and enforce the Act.
   • Leverages the ASC’s existing fraud-enforcement expertise, investigative tools, and consumer recovery fund experience to address real estate fraud efficiently and consistently statewide.
   • Establishes a consumer complaint process and authorizes the ASC to issue subpoenas, conduct investigations, impose administrative penalties, order restitution and disgorgement, and coordinate with law enforcement.
   • Preserves criminal prosecution authority and does not require exhaustion of administrative remedies before criminal enforcement.
      
2. Consumer Recovery Fund
   • Creates a consumer recovery fund to compensate victims for economic losses resulting from fraudulent conveyances.
   • Funded through enforcement actions, penalties, & forfeitures—not taxpayer appropriations.
      
3. Criminal Penalties
   • Fraudulent sale or lease of residential real property is classified as a Class D felony.
   • Aggravated fraudulent sale or lease—involving receipt of funds or victims age 70 or older—is a Class C felony.
      
4. Property Owner Notification
   • The ASC may fund a statewide notification system for any county in the state, alerting property owners when documents are recorded against their property.
      
5. Prevention Through Best Practices
   • Establishes best-practice identity and ownership verification standards for:
     • Real estate agents and brokers
     • Title agents
     • Closing attorneys
     • Notaries public
     • Online real estate platforms
   • The best practices are not required. Professionals who follow these best practices will receive civil-liability protections.
      
6. Deed Recording Safeguards for Probate Offices and Notary Protections
   • Enhances deed recording safeguards for Probate Offices, including identity verification and “trusted submitter” standards.
   • Strengthens notary training, bonding, and record-keeping requirements.
   • Requires an independent notary be used on transfers of real property.
      
7. Secure Business Filing Authority
   • Authorizes the Secretary of State to implement secure, credentialed filing systems to prevent fraudulent business filings used in real estate scams.
      
8. Expedited Quiet Title Process
   • Establishes a fast-track court procedure allowing fraudulent conveyances to be voided quickly and title restored to rightful owners.

Many modern real-estate schemes are no longer focused on the legitimate purchase and ownership of property. Instead, they are designed to extract economic value from property owners through resale, assignment, optioning, and complex contract structures. These schemes are deployed at scale by large investment firms, hedge funds, and private equity backed entities operating through networks of affiliated or front companies. Although presented as real estate transactions these arrangements function in practice as financial investment products secured by real estate and should be regulated with the same transparency and oversight as other financial investment products. These practices most often harm seniors, long-term owners, heirs, and financially vulnerable families—and undermine confidence in the real estate marketplace.

This session, the Alabama REALTORS® will bring legislation to protect Alabama property owners from deceptive and predatory real estate investment practices by treating them as investment conduct and placing enforcement authority with the Alabama Securities Commission. The bill targets:

• “Wholesaling” arrangements that disguise the buyer’s true role and profit
• Long-term recorded service agreements that cloud title and burden future owners
• Below-market, equity-stripping purchase offers presented as routine inquiries
• Repeated, mass, unsolicited investor solicitations that pressure owners
• Contract structures that prevent informed consent and fair market exposure

When filed, the bill is expected to include the following key provisions:

1. Creates Centralized Enforcement with the Alabama Securities Commission
   • Grants the ASC exclusive authority to administer, investigate, and enforce the Act including rulemaking and licensing authority.
   • Leverages the ASC’s existing fraud-enforcement expertise, investigative tools, and consumer recovery fund experience to address real estate fraud efficiently and consistently statewide.
   • Establishes a consumer complaint process and authorizes the ASC to issue subpoenas, conduct investigations, impose administrative penalties, order restitution and disgorgement, and coordinate with law enforcement.
   • Preserves criminal prosecution authority and does not require exhaustion of administrative remedies before criminal enforcement.
      
2. Regulates Investment-Oriented Property Solicitations
   Requires clear, prominent disclosures when property owners are contacted for investment purposes, including warnings when offers may be below market or assessed value and providing a right of cancellation for unsolicited purchase agreements.
    
3. Brings Wholesaling Under Enforceable Disclosure Rules
   Requires wholesalers to register and be licensed with ASC and requires buyers who intend to assign their contract interest to disclose:
   • Their limited equitable interest
   • Their intent to market the contract
   • The timing of any assignment
   Violations may carry criminal liability and civil and administrative penalties enforced by ASC.
    
4. Eliminates Unfair Recorded Service Agreements
   Voids long-term, non-performing agreements that cloud title, create de facto liens, or bind future owners, and authorizes:
   • Statutory damages
   • Title-clearing remedies
   • Administrative enforcement by ASC.
    
5. Prevents Harassment Through Repeated Unsolicited Contacts
   Limits the number of investor solicitations per property, mandates opt-out rights, and imposes record-keeping and anti-evasion requirements — all enforceable by ASC.

A full recap of REALTOR® Day at the Capitol will be included in next week’s edition of Real Estate Alabama.