USA – ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser, Katie Sinclair and Courtney Bradshaw, Dentons
Alabama’s Uniform Commercial Real Estate Receivership Act Effective 1 January 2024, Alabama joined 13 other states to adopt its own version of the Uniform Commercial Real Estate Receivership Act. The state had statutes regulating receiv - ers but lacked clarity in areas such as receiver appointments. This Act was enacted to provide clear guidelines and establish order regarding receivership law in Alabama. Some changes that impact how receivership law is practised in Ala - bama include the following: • a receiver may now sell receivership prop - erty free and clear of the lien of anyone who sought appointment of the receiver together with junior liens and any rights of redemption, with court approval; and • a receiver may adopt or reject contracts and leases, with court approval. See Ala. Code Section 6-6-780 to 6-6-807. The Act does not replace any pre-existing receiv - ership statutes, which will continue to govern receiverships outside the context of commercial real estate property.
the CTA, again pausing the enforcement of the CTA reporting requirements nationally. In March 2025, the US Treasury Department announced it would not enforce the CTA against US citi - zens, domestic reporting companies or benefi - cial owners. Out-of-State Co-Brokerage Agreement In December of 2024, Alabama passed legisla - tion that allows an out-of-state principal broker to collaborate with a licensed Alabama principal broker without obtaining an Alabama licence. The following requirements must be met by the out-of-state broker to conduct business within the state: • a co-brokerage agreement with a licensed Alabama broker; • the Alabama broker shall require a listing (or joint listing) of the property; • the Alabama broker shall supervise the show - ing of the property, and all related negotia - tions; • the Alabama broker’s name must be shown in all advertisements for the property in Ala - bama; • the out-of-state broker must be licensed as a broker in another state; and • all earnest money related to the co-brokerage agreement must be held in escrow by the Alabama broker unless the buyer and seller agree to a different arrangement in writing. In addition, the Alabama broker is held liable for all acts of the out-of-state broker, as well as their own acts, that arise from the execution for any co-brokerage agreement. See Section 790-X-1.05(1)-(5).
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 sim- ple estate (Section 35-4-2). Alabama law also permits life estates, easements 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 .
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