AL Underwriting Summary

Search/Exam

• Minimum Search Requirements No statute
• Plant or other search restrictions No
• Additional Requirements for REO Searches No
• Foreclosure Checklist N/A
• Special Searches Required (Code, HOA, Utilities)? None
• Survey Requirements
  • Purchase – not on platted residential
  • Refinance – not required

UPL

• All legal documents must be drafted by an attorney licensed to practice in the State of Alabama. Parties to a transaction can draft their own documents if they are doing so on behalf of themselves.

• Title Opinions must be rendered by an attorney licensed to practice in the State of Alabama.

• Searching, examining title, closing, and disbursing do not have to be handled by an attorney. Commencing 1/1/13, agents issuing commitments, policies and endorsements must be licensed as agents and the signatory must be likewise licensed.

Vesting

• joint tenants with rights of survivorship. Right of Survivorship must be express on face of deed.
• Tenants in common, presumed absent statement of survivorship
• Tenants by Entirety & Community Property not recognized.

Time Limitations

• US Judgment Liens 20 years, renewable for 20 years
• State Court Judgment Liens 10 years
• Federal Tax Liens 10 years (+30 days); can be refiled
• State Tax Liens 10 years
• Estate Tax Lien Federal 10 years
• State Inheritance Tax Liens 20 years
• Mechanics Liens 6 months
• Financing Statements 5 years
• Mortgages
• HOA Liens
• Condominium assessments

Odd Stuff

• Cancellation/Commitment fee is not prohibited in this state. It is customary to charge this fee.
• Under Alabama’s Residential Mortgage Satisfaction Act (to be effective 3/1/2013) an affidavit of satisfaction may be signed by a title insurance company or by a licensed attorney acting as its agent. See SB 347; Alabama Code Section 35 – New (codification is pending). However, the authorization of the mortgagor(s) in the mortgage for which release is being sought must be first obtained.