Alabama taxes property sales through its deed tax, Code of Alabama 40-22-1, requires an attorney for part of the closing and has no general seller disclosure form (buyer beware). It allows both court and out-of-court foreclosure and is not a community property state. Deadline to appeal a property tax assessment: 30 calendar days from the final publication of the assessment notice; then 30 days from the board's notice to appeal to circuit court.
Alabama in short
Is there a real estate transfer tax in Alabama?
Alabama has no single transfer tax but charges a deed tax of $0.50 per $500 of price (or fraction) and a mortgage tax of $0.15 per $100 borrowed, both paid at recording. The statutes do not say whether buyer or seller pays.
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What closing costs does Alabama law set?
Alabama has no official typical closing-cost total. The state fixes a deed tax of $0.50 per $500 of price and a mortgage tax of $0.15 per $100 borrowed, which come to $250 and $300 on a $250,000 sale with a $200,000 loan.
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How is property tax calculated in Alabama?
Alabama assesses an owner-occupied home at 10% of market value and applies local millage. In Birmingham the October 2025 total is 72.5 mills, about $1,760 a year on a $250,000 home.
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What is the deadline to appeal a property tax assessment in Alabama?
In Alabama, file a written objection with the county board of equalization within 30 calendar days of the final publication of the assessment notice, and if the board keeps the value, appeal to circuit court within 30 days of the board's notice.
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Do you need a real estate attorney to close in Alabama?
No Alabama statute says a buyer or seller must hire an attorney to close, but under Ala. Code 34-3-6 only a lawyer may prepare deeds and mortgages for others for pay, so an attorney normally prepares or supervises the legal documents even when a title company runs the table.
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What must a home seller disclose in Alabama?
Alabama does not require a home seller to deliver a disclosure form in the statutes reviewed. The written duty falls on licensed agents, who must disclose known latent structural defects (Code of Alabama 34-27-36), with fines of $100 to $5,000. Fraud statutes apply to all sellers.
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How does foreclosure work in Alabama?
Alabama lets a lender foreclose without going to court when the mortgage contains a power of sale: notice is published once a week for three successive weeks, then the home is sold at the county courthouse door.
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What first-time home buyer programs does Alabama offer?
Alabama offers first-time buyer help through the Alabama Housing Finance Authority (AHFA): First Step and Step Up give below-market rates and down payment help of 4% of the sales price, up to $10,000. The City of Birmingham's Ready to Own program adds up to $10,000 for homes inside city limits.
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Which natural hazards affect home insurance in Alabama?
Standard Alabama home policies do not cover flood. An NFIP policy covers up to $250,000 for a home and $100,000 for belongings, and the Strengthen Alabama Homes program offers grants of up to $10,000.
Alabama guides
- Closing costs in Alabama: what buyers and sellers pay
- Alabama deed tax and mortgage tax: rates and who pays
- Alabama property tax: how it works and the homestead exemption
- Seller disclosure in Alabama: what a seller must tell
- Do you need a real estate attorney to close in Alabama?
- Foreclosure process in Alabama: steps, timeline, redemption
- Home prices in Alabama and Birmingham: median value, trend
- First-time home buyer programs in Alabama and Birmingham
- How to verify a real estate license in Alabama
- Natural hazards and home insurance in Alabama (state-specific topic)