The Alabama Legislature banged its last gavel, closed its final journal, and adjourned its regular session in the current Alabama State House on Thursday, and Alabama REALTORS® have many accomplishments to celebrate over the past 30 legislative days.

From strong property title fraud protections to the expansion of catastrophe savings accounts to improved homestead exemption provisions and other measures, the Alabama Association of REALTORS® helped enact several bills that benefit our industry, our members, and the clients they serve.

Just as importantly, AAR successfully opposed and helped defeat several bills that were deemed harmful to our industry and the members we represent.

And when lawmakers convene next year, Alabama REALTORS® are prepared to continue standing tall for our members in the committee rooms, corridors, and chambers of the new Alabama State House.

Among AAR’s highlights of the session was passage of the Alabama Property Protection Act of 2026, which was sponsored by Sen. Arthur Orr (R - Decatur) and Rep. Paul Lee (R - Dothan) and combats scammers who falsely represent themselves as property owners and list, sell, or encumber real estate they do not own while the actual owners often remain unaware of the actions.

Property title fraud most often targets homes and real estate that is wholly owned with no mortgage or money owed on it, and elderly owners are usually victimized. The crime also occurs more often in urban rather than rural settings.

“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,” Orr said during the session. “And now, with fraudsters becoming more and more brazen and abundant, they’re using our outdated system to basically steal the titles to property then flip them very quickly to unwitting buyers.”

Lee noted during the House discussion that many con artists engaging in property title fraud live outside the United States and remain under the radar by committing their crimes via computer from various international locations.

The legislation sets up guard rails by requiring an owner to establish and verify their identify through various phases of listing, selling, and titling property.

It reclassifies the existing crime of “fraudulent sale of real property” to a Class D felony, which is punishable by one to five years in prison and a fine of up to $7,500, and establishes the crime of  “aggravated sale of real property” and classifies it as a Class C felony punishable by one to 10 years in prison and a fine of up to $15,000.

Probate judges are authorized to set up systems under the legislation that automatically notify property owners when conveyances containing their names or addresses of property they own are filed with the judges’ offices.

The measure also fast-tracks the ability for owners to void, block, and repeal fraudulent conveyances to reclaim their property titles, and it establishes an Alabama Title Fraud Recovery Fund for victims.

Another provision empowers the Alabama Securities Commission to aggressively investigate, combat, and prosecute property title fraud, as well.

Passed on the final day of the 2026 regular session, the bill has been delivered to Gov. Kay Ivey’s desk to be signed into law.

The Alabama Property Protection Act of 2026 was supported by the Alabama Bankers Association, Southeast Land Title Association, Alabama Land Title Association, and Alabama REALTORS®.

An that was passed into law by State Rep. Chip Brown (R - Hollinger’s Island) expands the list of expenses that can be covered using catastrophe savings accounts. 

Under current Alabama law, catastrophe savings accounts, which provide tax advantages to the holders because deposits are tax deductible, may be used to cover insurance deductibles and uninsured damage resulting from windstorm events.

Brown’s bill extends the “qualified catastrophic expenses” to include measures that proactively fortify a property against damage from hurricanes, floodwaters, and other windstorm event damage, but those expenses are capped at $15,000.

State Rep. Ken Paschal (R - Pelham) successfully passed an bill that allows veterans with full disabilities to exempt ad valorem taxes from debt-to-income ratios calculation when purchasing a home.

Veterans with 100% permanent disabilities are currently provided with a full exemption from property taxes on their homes, and this legislation allows them to claim the exemption when a home is under contract but before they have taken ownership.

Allowing the preliminary application ensures that potential ad valorem taxes due will not be included in debt-to-income ratio calculations when applying for a loan or home mortgage.

Paschal, who serves as vice chair of the House Military & Veterans Affairs Committee, praised his colleague, Rep. Jennifer Fidler (R - Silverhill), who approached him about the issue on behalf of a constituent and worked with Paschal to pass the legislation.

Another veteran-related measure passed into law by State Rep. Paul Lee (R - Dothan) removes the current requirement for permanently and totally disabled military veterans to reverify their disabled status each year in order to receive a full ad valorem tax exemption on their primary homes.

Under the provisions of House Bill 155, once a veteran has initially established their permanent disability, the property tax homestead exemption becomes permanent without need for renewal.

AAR’s will publish our full end of session recap next week.