More Detail on AL Recording Fees and Transfer Tax

Real Estate Recording Fees

In Alabama, counties have different recording fees and the fees do change from time to time. So it is important to check recording fees with your county (many are online) before submitting for recording.

Deed Tax

§ 40-22-1(a) To basic document charges, add $.50 per $500 or $1.00 per $1000 on value of property conveyed - charged in increments of $500. The amount of value conveyed is always rounded to the nearest $500. In some counties, a $1.00 “no-tax” fee is charged on deeds that are tax exempt. Deed tax applies to Bill of Sale conveying personal property § 40-22-1(a) See below for simultaneous recording of Deed and Mortgage (Purchase Money) Buyer customarily pays the transfer tax, but may be negotiated as part of the purchase agreement.

Exempt from Deed Tax

No privilege or license tax shall be required for any of the following: (1) The transfer of mortgages on real or personal property within this state upon which the mortgage tax has been paid. (2) Deeds or instruments executed for a nominal consideration for the purpose of perfecting the title to real estate. (3) The re-recordation of corrected mortgages, deeds, or instruments executed for the purpose of perfecting the title to real or personal property, specifically, but not limited to, corrections of maturity dates thereof, and deeds and other instruments or conveyances, executed prior to October 1, 1923.

Real Estate Sales Validation Form

Beginning August 1, 2012, a buyer of real estate must provide the actual purchase price when recording a deed, or file the Real Estate Validation Form, which shows the Total Purchase Price, Actual Value, or Assessor's Market Value. Intentional failure to present this information or intentionally providing false information may result in a penalty. This page is recorded with the deed and is charged at the regular recording fee of $3.00 per page.

Mortgage Tax

To basic document charges, add $.15 per $100 or $1.50 per thousand charged in increments of $100. Mortgage amount is always rounded up to the nearest $100. In some counties, a $1.00 “no-tax” fee is charged on mortgages that are tax exempt.

Simultaneous Recording of Deed and Mortgage (Purchase Money)

The mortgage tax and fee for recording the mortgage will be calculated as outlined above. The deed tax will be figured on the amount of the sales price exceeding the amount of the mortgage, if the mortgage is made to a taxable concern and the mortgage tax collected. If the sales price or value is less than the amount of the mortgage, a $1 “no-tax” fee is assessed on the deed. If the mortgage is made to a non-taxable concern then the deed tax will be charged on the total value of interest being conveyed and a $1 “no-tax” fee will be assessed on the mortgage. The phrase Purchase Money must specifically be stated on the mortgage. § 40-22-1(c)

Deed with Assumption of Mortgage

Deed tax is based on difference of sales price or market value and amount of mortgage being assumed; If sales price or market value is less than amount assumed. § 40-22-1(c)

Mortgage tax due on current remaining balance unless mortgage is to a tax-exempt entity, in which case full deed tax is due and paid on mortgage.

Some counties charge a $1.00 “no-tax” fee for deed tax.