Alabama's official deed recordation tax is $0.50 per $500 of value, or fraction thereof. The mortgage tax is $0.15 per $100 of indebtedness, or fraction thereof. The Department of Revenue cites sections 40-22-1 through 40-22-12 and sends two-thirds to the General Fund and one-third to the county.

On a $100,000 deed, the state recordation tax is $100. On a $200,000 deed, it is $200. On a $100,000 mortgage, the mortgage recordation tax is $150. Those examples use the official per-unit rates and assume the taxable value or indebtedness equals the round figure in the example. A fraction of a unit still counts as a full unit under the "or fraction thereof" language on the official page.

How is the tax distributed, and what else might be due?

The Department of Revenue states that two-thirds of the recordation tax goes to the General Fund and one-third goes to the county. That split is about the state recordation tax, not about every fee a courthouse may collect. County recording fees, copy fees, and local practices vary. This article does not invent a statewide recording-fee amount, and it does not invent a statute that always assigns the tax to the buyer or the seller. Who pays is often a contract term. Ask the closing attorney or closing office how the settlement statement will allocate the official tax and the local fees.

Instruments are recorded at the local probate office, and the judge of probate is the official who receives them for record. Bring the original instrument in recordable form, any required tax payment, and any valuation or attestation paperwork the office currently requires. If a county or the Department of Revenue publishes a sales-validation or attestation form, use the current official form rather than a copied version from an unofficial site. This article does not invent a form number that the department's recordation-tax page does not itself display.

Proof of actual purchase price or actual value can matter, because the official rate is based on value for deeds and on indebtedness for mortgages. If a deed recites a nominal sum that does not reflect the consideration, expect the recording office to ask for support for the value used to compute the tax. If a property is already subject to a mortgage on which the mortgage tax has been paid, official statutory rules can limit the taxable value on a later deed to the value in excess of those liens. Confirm that calculation with the probate office and the statute rather than guessing at the credit.

How should buyers and sellers budget for it?

Build the official state tax into the closing figures early. For a purchase-money deed, start with $0.50 per $500 of the taxable value. For the new mortgage, start with $0.15 per $100 of the indebtedness being recorded. Then add the title premium, any survey, and county recording charges as the closing office quotes them. Because the tax is computed on each $500 or $100 increment or fraction, a price just over a round increment can add another unit of tax.

Refinances and assumptions can produce a new mortgage instrument, a modification, or both. The official page groups mortgages, deeds of trust, and conditional sale contracts under the $0.15 per $100 rate. Whether a particular modification is taxable is a question for the recording office and the statute, not for a rule of thumb in a consumer article.

Keep the recorded deed and the stamped receipts with your closing file. Those papers are useful later for homestead applications, insurance, and a future sale. Recording is also the step that puts the instrument in the public record. An unrecorded deed may leave you exposed to later claims in ways this article will not try to litigate; the practical step is to record promptly after closing.

If you are buying Alabama real estate, talk with a licensed local agent about property and flood insurance, and ask the closing office to show the official recordation tax and any county fees on the settlement statement before you sign.

Ask the closing office to show a line-by-line computation, not only a bundled "recording" figure. A $150,000 deed is 300 units of $500, so the official deed tax is $150. A $250,000 deed is 500 units, or $250. A $180,000 mortgage is 1,800 units of $100, so the official mortgage tax is $270. If a price falls between units, the "fraction thereof" language adds a full extra unit. Confirm the taxable base with the probate office when the deed recites nominal consideration or when assumed and new debt appear on the same closing.

If you refinance later, a new mortgage or a modification may again be presented for record and may again be subject to the official mortgage rate, depending on the instrument and the statute. Keep the recorded mortgage and any satisfaction or release, because later buyers and lenders will look for a clean chain in the probate record.

Out-of-state owners and remote closings still record in the Alabama county where the land lies. Overnight packages, original-signature requirements, and notary rules are set by the receiving office. Call before you send an original deed so a rejectable instrument does not sit unrecorded past the closing date you expected.

FAQ

What is the Alabama deed recordation tax?

The Department of Revenue publishes a rate of $0.50 per $500 of value, or fraction thereof, on deeds and bills of sale.

What is the mortgage recordation tax?

The official rate is $0.15 per $100 of indebtedness, or fraction thereof, on mortgages, deeds of trust, conditional sale contracts, and similar instruments.

How is the tax split between the state and the county?

Two-thirds goes to the General Fund and one-third goes to the county, according to the official recordation-tax page.

Are county recording fees included in those rates?

No. The published rates are the state recordation tax. County recording fees vary and are quoted by the local probate or closing office.

Sources: Alabama Department of Revenue Recordation Tax, Code of Alabama sections 40-22-1 through 40-22-12.

Alabama does not have a statewide statutory seller-disclosure form that every used-home seller must complete before a purchase agreement is signed. Buyers should inspect the property, ask direct questions in writing, and review any documents the seller or a licensee actually provides. Section 6-5-102 addresses suppression of a material fact.

That statute states that suppression of a material fact which the party is under an obligation to communicate constitutes fraud. The obligation to communicate may arise from the confidential relations of the parties or from the particular circumstances of the case. It is not a fill-in-the-blank state form, and this article does not invent a required number of days after signing to cancel a contract for a missing disclosure packet.

What should a buyer do without a mandated state form?

Treat due diligence as the main protection on a used house. Hire qualified inspectors for the structure, roof, heating and cooling, electrical, plumbing, termites, and, where the facts warrant it, septic, well, or flood-related concerns. Walk the property. Compare what you see with any voluntary disclosure, marketing remark, or prior inspection the seller shares.

Put important questions in writing and keep the answers. Ask about known leaks, foundation movement, additions, permits, insurance claims, flood history, wells, septic systems, easements, and whether the seller occupies the home as a homestead. If a real estate licensee is involved, ask how that licensee will deliver property information and keep copies of every statement. A trade-association form is a private form, not a statutory statewide mandate, even if it is commonly used in a local market.

If the contract includes inspection, due-diligence, or repair-request deadlines, those dates come from the contract you sign, not from a hidden state disclosure clock. Read the contract before you sign it. If a statement in a voluntary form later proves wrong, the contract, the statement itself, and section 6-5-102 are among the authorities a lawyer may evaluate. This article is not legal advice and does not invent a particular case outcome.

What does section 6-5-102 actually say?

The official text is short. Suppression of a material fact which the party is under an obligation to communicate constitutes fraud. The obligation to communicate may arise from the confidential relations of the parties or from the particular circumstances of the case. Whether an obligation existed in a particular sale depends on the facts, the relationships, and how Alabama courts apply the statute. A buyer who never asks, never inspects, and never reads the contract is in a weaker position than a buyer who does those things and keeps records.

Do not confuse this statute with a lead-based paint disclosure or other federal requirements that can apply to older housing. Federal rules, if they apply, are separate from Alabama's lack of a general used-home disclosure form. Also do not confuse it with the insurance, flood, or homestead questions a buyer should still ask. Those topics have their own official sources, including FloodSmart.gov and the Department of Revenue homestead pages.

Sellers should still be careful about what they say and what they leave unsaid. A voluntary form, a text message, or a remark at a showing can become part of the record. If you do not know the answer, say so rather than guessing. If a known material problem exists, talk with your own advisor about how to handle it in the contract rather than relying on the absence of a state form.

How do closing and recording fit in?

Even without a mandated disclosure form, a closing still involves a deed, any mortgage, and Alabama recordation tax collected when instruments are recorded, as the Department of Revenue explains on its recordation-tax page. Title work, a survey, and a walk-through remain practical steps. None of those steps replaces a physical inspection of the house.

If you will occupy the home as a primary residence, ask the local county office about homestead exemption timing, because official eligibility looks to owner-occupancy on the first day of the tax year. If the assessed value later looks wrong, the official Department of Revenue appeal path begins with a written protest to the County Board of Equalization within 30 days after you receive the written valuation notice.

If you are buying or selling an Alabama used home, talk with a licensed local agent about property insurance and flood coverage, and have the property inspected and the contract reviewed before you sign. If a licensee is involved, you can also confirm that person's license through the Alabama Real Estate Commission, but that license check is not a substitute for a property inspection.

FAQ

Does Alabama require a statewide seller-disclosure form on a used home?

No statewide statutory residential seller-disclosure form for used homes is described in this official-source review. Buyers should inspect and ask written questions rather than waiting for a state form that the statutes do not require.

What is section 6-5-102?

It provides that suppression of a material fact which the party is under an obligation to communicate constitutes fraud, and that the obligation may arise from confidential relations or the particular circumstances of the case.

Are Realtor association forms the same as a state mandate?

No. A private trade form can still matter if it is used in the transaction, but it is not a statutory statewide disclosure form.

What is the most useful step for a buyer?

Inspect the property, ask questions in writing, read the contract deadlines, and keep copies of every statement and report.

Sources: Code of Alabama section 6-5-102, Alabama Department of Revenue Recordation Tax, Alabama Department of Revenue Homestead Exemptions, National Flood Insurance Program.