DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

Alabama

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in Alabama, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/alabama · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkTwo kinds of lien: a "full price" lien for the contractor (or a supplier who gave advance notice) and an "unpaid balance" lien for everyone else.

Alabama at a Glance

Topic Alabama answer Where it comes from
Lien filing deadline Original contractor: 6 months after last work. Journeyman/day laborer: 30 days. Everyone else: 4 months Ala. Code § 35-11-215
Two kinds of lien "Full price" lien (contractor, or supplier who gave advance notice) vs. "unpaid balance" lien (everyone else) Ala. Code § 35-11-210
Area covered The whole lot in a city or town; outside one, 1 acre plus the land under the improvement Ala. Code § 35-11-210
Enforcement suit Within 6 months after the entire debt matures Ala. Code § 35-11-221
Priority vs. mortgages Lien beats encumbrances created after work started; earlier mortgages win except as to a removable improvement Ala. Code § 35-11-211
Transfer to security In a pending suit: claim + 8%/yr interest for 3 years + $100 costs Ala. Code § 35-11-233
Deed execution Signed and attested by one witness (two if signed by mark); an acknowledgment substitutes for the witness Ala. Code §§ 35-4-20, 35-4-23
Remote notarization Remote acknowledgments by audio-video allowed since 2021; notary must be in Alabama Ala. Code § 36-20-73.1
Deed transfer tax Deed tax $0.50 per $500 ($1 per $1,000); only value above any mortgage or vendor's lien on the property on which mortgage tax has been paid is taxed; RT-1 unless the deed itself shows the price or value Ala. Code § 40-22-1
Mortgage/indebtedness tax Mortgage tax $0.15 per $100; revolving lines taxed on the stated maximum (or initial amount with reporting); extensions and refinances taxed Ala. Code § 40-22-2
Future advances Priority from recording (Alabama Supreme Court, 2019) GHB Constr. & Dev. Co. v. W. Ala. Bank & Trust, 290 So. 3d 793 (Ala. 2019)
Title premium regulation Filed rates, usable 60 days after filing unless disapproved; no rebates, no negotiating or bidding the rate Ala. Code § 27-25-6

1. Mechanics' Lien Rules

Plain English

Alabama's lien timing is different from its neighbors. Instead of one deadline, it has three, depending on who you are: the original contractor gets 6 months, a journeyman or day laborer gets 30 days, and everyone else gets 4 months from the last work. There are also two sizes of lien. A contractor (or a supplier who warned the owner in advance) gets a "full price" lien. Other subs and suppliers only get a lien on the unpaid balance the owner still owes the contractor. That's why the owner's payment history matters in Alabama.

Key Rules

Who has a lien and how big (§ 35-11-210).

  • Anyone who performs work or furnishes material for a building or improvement under a contract with the owner, or the owner's agent, contractor, or subcontractor, has a lien on the improvement and the land.
  • Area: the entire lot in a city or town; outside a city or town, 1 acre plus the land on which the improvement sits.
  • Unpaid balance lien: employees of the contractor and persons furnishing material to the contractor have a lien only to the extent of the unpaid balance the owner owes the contractor.
  • Full price lien: a supplier who, before furnishing, notifies the owner in writing that specified material will be furnished at specified prices gets a lien for the full price, regardless of the unpaid balance, unless the owner notifies the supplier in writing, before the material is used, that the owner won't be responsible. A short notice form is in the statute.

Notice before filing (§ 35-11-218). Every claimant other than the original contractor must give the owner written notice of the lien claim (amount, for what, and from whom owed) before filing its statement. A supplier that gave the advance notice under § 35-11-210 does not need it.

Verified statement: Alabama's lien timing (§ 35-11-215). The lien is lost unless a verified statement is filed in the office of the judge of probate of the county:

  • original contractor: within 6 months after the last item of work or material;
  • journeyman or day laborer: within 30 days after the last day's work;
  • every other person: within 4 months after the last item of work or material. The form is in § 35-11-213.

Enforcement suit (§ 35-11-221). Suit must be commenced within 6 months after the maturity of the entire indebtedness secured by the lien.

Priority (§ 35-11-211, as amended by Act 90-98).

  • The lien has priority over encumbrances created after work began.
  • A prior mortgage or encumbrance has priority, except that the lienor can claim the separable improvement itself if it can be removed without harm.
  • Foreclosure of a prior mortgage extinguishes the lien, but the lienor keeps statutory redemption rights.

Transfer to security (§ 35-11-233(b)). In a pending action, anyone with an interest in the property may bond or deposit the claim plus 8% per year interest for 3 years plus $100 for costs. The lienor has 10 days after receiving the court's certificate of transfer to contest the amount or the surety.

Waivers. We did not find statutory lien waiver forms in Alabama.

Practice Points

  1. Look back far enough. Because original contractors have 6 months to file, an Alabama lien window is longer than most. Treat improvements within the last 6 months as a live risk.
  2. Get the owner's payment history. For unpaid-balance claimants, the owner's exposure is what it still owes the contractor. Get the contractor's affidavit of payment and final waivers.
  3. Watch for "full price" notices. Ask the owner whether it received any advance supplier notices under § 35-11-210. Those suppliers can lien for the full price.
  4. Construction loans. Record the mortgage before work starts so it is a prior encumbrance under § 35-11-211.
  5. Search the probate office for verified statements, not just the land records index.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

An Alabama deed must be signed and attested by one witness, or two witnesses if the grantor signs by mark. In practice, a notary's acknowledgment takes the place of the witness. Alabama allows remote notarization by audio-video for acknowledgments, as long as the notary is physically in Alabama. Deeds are taxed at 50 cents per $500, and mortgages at 15 cents per $100.

Key Rules

  • Execution (§ 35-4-20). Conveyances must be signed by the grantor and attested by one witness; if the grantor signs by mark, two witnesses.
  • Acknowledgment substitutes for witnesses (§ 35-4-23). An acknowledgment before an authorized officer satisfies the attestation requirement.
  • Statutory forms (§ 35-4-29). The statute sets out acknowledgment forms for individuals, corporations and persons signing in a representative capacity.
  • Remote notarization (§ 36-20-73.1, Act 2021). A notary may take acknowledgments by two-way audio-video communication. The notary must be physically in Alabama, and the recording must be kept for 7 years. The signer still signs in wet ink, and the signed documents must be delivered to the notary for the notary's original signature (§ 36-20-73.1(c), (g); Act 2021-319, amended by Act 2023-548).
  • Deed tax (§ 40-22-1). $0.50 per $500 of value. Proof of the purchase price or value must accompany the deed. The Real Estate Sales Validation Form (RT-1) is not needed if the deed itself shows the grantor's and grantee's names and mailing addresses, the property address, the date of sale and the price or value.
  • Mortgage tax (§ 40-22-2). $0.15 per $100 of the principal secured. An open-end or revolving mortgage may be taxed either on the stated maximum principal or on the initial amount, with later advances reported and taxed; either way, the total tax never exceeds the tax on the stated maximum (§ 40-22-2(1)b).
  • Format and preparer. We did not research Alabama's recording format and preparer-name requirements.

Practice Points

  1. Witness or acknowledgment. A deed with neither a witness nor an acknowledgment is not entitled to record. Confirm one is present.
  2. Signature by mark needs two witnesses.
  3. Mortgage tax on HELOCs. Know which open-end option the lender used: under the initial-amount option, later advances must be reported and taxed (financial institutions report each September under § 40-22-2(2)b).

Citations

3. Securing Future Advances

Plain English

In Alabama, a mortgage that secures future advances takes priority from the date it was recorded, even for advances made later. The Alabama Supreme Court confirmed this in 2019 when a bank's future-advance mortgage beat a later materialman's lien. An older Alabama case says a lender making optional advances after it has notice of a junior lien is not protected for those advances. Alabama courts also enforce clearly written "dragnet" clauses.

Key Rules

  • Priority from recording. GHB Constr. & Dev. Co. v. W. Ala. Bank & Trust, 290 So. 3d 793 (Ala. 2019) (on rehearing; the Sept. 2018 opinion was withdrawn), held that a mortgage securing future advances has priority from recording over a later materialman's lien, relying in part on § 35-4-34 (no consideration needed at signing).
  • Optional advances after notice. Mobley v. Brundidge Banking Co., 347 So. 2d 1347 (Ala. 1977): after notice of a junior lien attaches, the senior mortgagee is not protected in making optional future advances.
  • Dragnet clauses. Alabama courts have enforced the clear and unequivocal language of a dragnet clause (Southern Ready Mix v. AmSouth Bank, 576 So. 2d 188 (Ala. 1991); see also Martin v. First Nat'l Bank of Opelika, 279 Ala. 303, 184 So. 2d 815 (1966)).
  • Mortgage tax. See § 40-22-2 for how open-end mortgages are taxed.

Practice Points

  1. State the maximum. Make sure open-end mortgages state the maximum and that tax was paid consistent with § 40-22-2.
  2. Junior liens and optional advances. If you insure a later advance, check for junior liens the lender knew about.
  3. Payoffs. Freeze letters for HELOC payoffs, and record the satisfaction promptly.

Citations

4. Subdivision Statutes and Regulations

Plain English

Alabama cities control subdivisions through their planning commissions; counties have a separate statute. In a city with subdivision regulations, a plat must be approved before it can be recorded or used to sell lots. Selling a lot first can cost $100 per lot, and a metes-and-bounds description doesn't avoid the penalty. But the statute says it does not impair otherwise valid contracts.

Key Rules

  • Municipal approval (§ 11-52-30). Where the municipal planning commission regulates a subdivision, the plat must first be approved by the commission. Outside the corporate limits, no plat may be recorded, and no lot sold by reference to it, until the commission approves it and the county engineer certifies the approval (§ 11-52-30(k), (l)).
  • Procedure (§ 11-52-32).
  • Penalty (§ 11-52-33). An owner who transfers or sells a lot by reference to an unapproved plat forfeits $100 per lot. Metes-and-bounds descriptions are not exempt. The municipality may seek an injunction. The section does not impair otherwise valid contracts (§ 11-52-33(d)).
  • County subdivisions (§ 11-24-1 et seq.). Counties regulate subdivisions in unincorporated areas under Chapter 24.

Practice Points

  1. Check for the planning commission's approval certificate on the recorded plat.
  2. Lots sold before approval: the statute imposes a penalty and allows an injunction but does not declare the deed void. Expect permit and penalty issues. Refer to underwriting.

Citations

5. Title Premium Rates

Plain English

Alabama is a filed-rate state. Each title insurer files its rates with the Commissioner of Insurance, and can use them 60 days after filing unless the Commissioner disapproves. Alabama's statute is unusually direct: rebates are expressly prohibited, rates may not be negotiated or bid, and a buyer gets a reissue credit only by physically producing the prior policy.

Key Rules (§ 27-25-6, Act 2001-496)

  • File before use. A title insurer may not do business until its rates are filed.
  • 60 days. The Commissioner reviews within 60 days; the rates may be used after 60 days unless disapproved. A hearing is available within 30 days of a written request.
  • No rebates. "The rebate of premiums to the insured [is] expressly prohibited."
  • Reissue credit only when the insured physically produces the prior policy, including its schedules, issued by a licensed title insurer.
  • No negotiation or bidding. No rate filing may provide for negotiating or bidding the rate.
  • Charge only filed rates. No one may charge any premium except in accordance with the insurer's filed rates.

Practice Points

  1. Reissue credit: no prior policy in hand, no reissue rate. Keep a copy in the file.

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Alabama has a deed tax of 50 cents per $500 ($1 per $1,000) and a mortgage tax of 15 cents per $100 ($1.50 per $1,000). The quirk: when a buyer finances the purchase and the mortgage is recorded with the deed, the deed tax applies only to the value above the mortgage amount, because the mortgage tax is paid on that part. Alabama has no general refinance exemption, so renewals and extensions are taxed on the amount extended.

Key Rules

(a) Deed transfer, conveyance or excise tax

  • Rate. $0.50 per $500 or fraction of value (§ 40-22-1).
  • Mortgage credit. Only the value in excess of any mortgage or vendor's lien on the property on which mortgage tax has been paid is subject to deed tax (§ 40-22-1(c)).
  • Proof of value. Proof of the actual price or value must accompany the deed (§ 40-22-1(c)); the RT-1 form is not needed if the deed itself shows the required information. Without proof, the tax is based on the assessed value. Intentionally failing to give proof after a specific request, or giving false proof, carries a penalty of the greater of $100 or 25% of the tax due (§ 40-22-1(h)).
  • No local add-ons, mansion tax or entity-transfer tax found. Exemptions are in § 40-22-1(b).

(b) Mortgage, indebtedness or intangible tax

  • Rate. $0.15 per $100 or fraction of the amount secured (§ 40-22-2(1)).
  • Open-end and revolving. Pay on the stated maximum, or pay on the initial amount and then on later advances under the certification and annual reporting option (§ 40-22-2(2)). Total tax is capped at the stated maximum regardless of cumulative advances (§ 40-22-2(1)b).
  • Purchase-money deeds. A deed reciting unpaid purchase money is taxed as a mortgage on that amount (§ 40-22-2(3)).
  • Additional security for the same debt, with the amount and maturity unchanged, is exempt (§ 40-22-2(4)).
  • Extensions and renewals are taxed on the amount extended (§ 40-22-2(6)), so a refinance pays tax even with the same lender.
  • Out-of-state collateral is apportioned (§ 40-22-2(8)).

(c) Other recording taxes and fees

  • Probate judge recording fees are set by statute and local acts and vary by county.

Practice Points

  1. Worked example. $400,000 purchase with a $320,000 loan recorded together: mortgage tax $480; deed tax only on $80,000 = $80.
  2. Record the purchase-money mortgage with the deed so the mortgage tax is paid and the deed-tax credit applies.
  3. Refinances: budget full mortgage tax on the amount extended.

Citations

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