The Alabama Legislature is close to final passage on bills supporters hope will protect property owners by making it harder for fraudsters to sell real estate they don’t own.
Senate Bill 292, the Alabama Property Protection Act of 2026, was unanimously passed last week by the Alabama Senate. The House version also passed that chamber without opposition.
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The legislation requires more identification verifications at multiple points in the property titling and selling processes. It also increases the penalties for the fraudulent sale of real property to a Class D felony.
Property title fraud occurs when people falsely represent themselves as property owners and list, sell or encumber real estate they do not own.
“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 told Alabama Daily News. “And now, with fraudsters becoming more and more brazen and abundant, they’re using our outdated system to basically steal the titles to property then flip them very quickly to unwitting buyers.”
Orr has been working on this legislation since last year.
Senate Bill 292, by Sen. Arthur Orr, R-Decatur, and House Bill 426, by Rep. Paul Lee, R-Dothan, require real estate agents or brokers to obtain a government-issued identification and real property ownership records before agreeing to sell or lease real property when the seller is unknown and not physically present.
Settlement agents would have to conduct identity and property ownership verification prior to closing for Class III properties, which include single-family homes, farmland and timberlands, that are vacant. The bill also enhances notary requirements and gives discretion to refuse to notarize documents that may be fraudulent.
EDITOR’S NOTE — This story was written by Mary Sell and originally published by Alabama Daily News. ADN’s Claire Harrison contributed to this report.
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