USA – ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser, Katie Sinclair and Courtney Dow, Dentons
Dentons 2311 Highland Avenue South Suite 500 Birmingham, Alabama 35205 USA
Tel: +1 205 930 5100 Fax: +1 205 930 5101 Email: marketing.us.dsp@dentons.com Web: www.dentons.com
1. General 1.1 Main Sources of Law
Significant Deals in 2025 In 2025, prominent companies commenced or announced significant developments in Alabama. A leading steel and mining company announced plans for a USD1.2 billion specialty electrical steel facility in Mobile County, while a major pharmaceutical compa - ny announced a USD6 billion manufacturing facility in Huntsville. Data centre growth continued as a promi - nent social media company expanded its Montgom - ery investment from USD800 million to USD1.5 billion. Birmingham experienced a range of developments, notably in adaptive reuse. The century-old Eyer-Raden Building welcomed new hospitality and retail tenants, while Up-Down Birmingham launched an arcade bar in a renovated warehouse. The multifamily sector saw activity with the completion of Colina WeHo, a USD51 million development in West Homewood. 1.3 Proposals for Reform Anti-Money Laundering Regulations for Residential Real Estate Transfers In 2025, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed the Anti-Money Laundering Regulations for Residential Real Estate Transfers (the “Final Rule”), which would impose a nationwide reporting requirement for cer - tain non-financed (all-cash) transfers of residential real estate to legal entities or trusts. Under the Final Rule, certain parties involved in the closing or settlement of qualified transactions – including but not limited to the title company/agent, licensed attorney, broker, real estate salespersons, or any other person providing closing or settlement services in relation to the trans - action – must file a Real Estate Report with FinCEN,
Knowledge of federal, state and local law, of the changes to those laws, and of local forms and cus - toms is essential in practising real estate law. Alabama land records are handled on a county-by-county basis. Many probate offices have implemented technological improvements for better filing and access to recorded documents, though these developments can still vary significantly between counties. Closing commercial deals involves standard forms and requirements for both state law compliance and title insurance. All Sections referenced herein are Sections of the Code of Alabama (1975). 1.2 Main Market Trends and Deals Trends in 2025 In 2025, the US real estate market demonstrated resil - ience. Despite the effects of increased tariffs, stabi - lised interest rates by year-end generated optimism for 2026. Developers nationwide embraced adaptive reuse, and Alabama mirrored this trend. In Birming - ham, one of the state’s largest malls is being consid - ered for conversion to a multifamily development, and developers have repurposed vacant warehouses into entertainment venues. Demand for data centres has also surged, and Alabama has emerged as an attrac - tive location for data centre development and expan - sion. With these trends and nationally recognised companies seeking land in the state, Alabama’s real estate market is well positioned for continued growth.
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