AL Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No statute However the long-standing customary search periods are: for loan policies, a minimum 30 year search, although circumstances can require a lengthier search; for owner’s policies, a minimum 60 year search, although circumstances may require a lengthier search.
• 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.

Property Tax

Real estate taxes are paid in arrears and become due October 1 of each year and become delinquent on January 1 of the following year. Tax sales occur in the spring, usually in April or May, but each county conducts their sales at different times.

Who May Serve As Trustee On Deed Of Trust

Alabama is a mortgage state.

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.