USA – ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser, Katie Sinclair and Courtney Dow, Dentons
generally within 30–60 days of the closing. Reporting obligations began on 1 March 2026. The Real Estate Consumers Agency and Disclosure Act Following the USD418 million National Association of Realtors (NAR) settlement in 2024, Alabama Act No 2025-59 reformed the Real Estate Consumers Agency and Disclosure Act (RECAD), taking effect on 18 April 2025. Key changes in RECAD include that: • buyers are not required to sign an agreement before viewing properties; • a written RECAD disclosure form and early dis - closures of brokerage services and compensation are required to protect both the consumer and real estate professional; and • referral agreements between real estate licensees are required in writing to protect against referral scams and unfair brokerage practices. See Ala. Code Section 34-27-80 through 34-27-88. Alabama’s Military Land Use Planning Legislation Effective 1 October 2025, a developer may not com - mence the construction of any structure that is 200 feet tall or more within two miles of a military installa- tion without approval from the local governing body. This presents a potential hurdle for developers inter - ested in areas such as Huntsville, given its concentra - tion of military defence and research facilities. Effective October 2025, an aggrieved party may now appeal the final decision of a municipal zoning board of adjustment in the county circuit court by filing a notice of appeal with the board within 15 days and then filing the appeal in circuit court within 45 days after the final decision. Ater serving the board, the board must then transmit the certified record to the court within 45 days of service. The board’s decision will remain in effect during the de novo appeal process unless a stay is granted based on standard factors See Ala. Code Section 11-106-6. Zoning Appeals in Circuit Court
such as likelihood of success on the merits and irrepa - rable injury without a stay. See Ala. Code Section 11-52-81.
2. Sale and Purchase 2.1 Categories of Property Rights
Unless the conveyance specifies otherwise, when real property is conveyed, granted or demised, it is transferred as an absolute fee simple estate (Section 35-4-2). Alabama law also permits life estates, ease - ments and servitudes. A fee simple owner may grant a leasehold estate or licence to permit others to occupy and use the owner’s real property. See 6. Commercial Leases . 2.2 Laws Applicable to Transfer of Title A conveyance of real property must generally be writ - ten and signed by all parties, with witnesses to the signatures (Section 35-4-20), and must contain a valid property description. Conveyance instruments must: • provide the instrument preparer’s name and address (Section 35-4-110); • list the grantor’s marital status and conveyed prop - erty’s homestead status (Section 35-4-73); and • provide ad valorem tax notice, typically using Real Estate Sales Validation Form RT-1 (Section 40-22- 1). See also 8.1 VAT and Sales Tax . Residential conveyances require special disclosures, but generally there are no special laws regarding the transfer of real property based on use. However, the parties to a transaction or locality rules may require additional provisions to be included in the deed or in a separate document recorded with the deed at closing. Buyers should still take additional precautions to ensure that the property’s proposed use complies with relevant local rules (see 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law ).
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