Ala. Code § 8-6-61 (2026)

(a) There is established in the State Treasury an Alabama Title Fraud Recovery Fund to be administered by the Alabama Securities Commission in accordance with this section. The fund shall be budgeted and allotted in accordance with Article 4 of Chapter 4 of Title 41 and Chapter 19 of Title 41.

(b) Money in the fund shall only be used to compensate individuals injured by title conveyance fraud for actual economic damages, excluding interest and court costs, incurred by the injured party. Payments from the fund are subject to the following limitations and conditions:

(1) The fund shall only make payments to real property owners who file a complaint with the commission as required by this section.

(2) The fund shall not issue payments based on consent judgments.

(c) The commission, by rule, shall set the maximum payment amount that can be issued from the fund to a complainant.

(d) Any person with a claim for title conveyance fraud may submit a written complaint to the commission, which may investigate the complaint.

(e) During the investigation of a complaint, the commission may:

(1) Hold hearings;

(2) Subpoena witnesses;

(3) Administer oaths;

(4) Examine any individual under oath; and

(5) Compel the production of records, books, papers, contracts, or other documents.

(f) If an individual fails to comply with a subpoena issued by the commission or to testify on matters for which the individual may be questioned under this section, the commission may petition a court of competent jurisdiction for enforcement.

(g) If the commission determines that a person is liable for fraudulent title conveyance, the commission may take any of the following actions:

(1) Issue an administrative order declaring the conveyance void pursuant to Chapter 21 of Title 35.

(2) Impose a civil penalty of up to one hundred thousand dollars ($100,000) per transaction on the liable person or persons who have committed the fraud, which shall be deposited into the Alabama Title Fraud Recovery Fund.

(h) Any final order issued by the commission shall be legally binding and shall not be stayed except by order of the circuit court in a timely filed appeal. Any party dissatisfied with a final judgment or decision by the commission may appeal to the circuit court where the property is located not later than 30 days from the date of the final administrative order of the Alabama Securities Commission. For appeals, the commission shall provide a certified transcript of the proceedings and actions taken by the commission to the circuit court to which the appeal is taken.

(i) The judge of probate may comply with an administrative order under this section by recording the enforcement order in the official real property records and making a marginal notation on the voided instrument referencing the recorded order, or by making a cross reference to the voided instrument when recording the administrative order.

(j)(1) Nothing in this chapter shall apply to the acquisition of real property, easements, or rights-of-way for utility infrastructure.

(2) Banks, credit unions, title insurers, and state or local governments shall not be subject to civil penalties under this section. This subdivision does not apply to any individual acting as a real estate agent or settlement agent, regardless of the individual’s employer.

(3) Documentation demonstrating compliance with the requirements of Section 35-21-5 shall constitute an affirmative defense to any civil penalty under this section for individuals acting as a real estate agent or settlement agent.

(4) Any civil penalty under this section must be commenced not later than four years after the date the transfer is recorded in the public record.

(Act 2026-536, §2.)