Alabama: Caveat Emptor with Mandatory Disclosure
Alabama is a traditional caveat emptor ("buyer beware") state, but Alabama Code §6-9-20 requires sellers to complete an Alabama Residential Property Disclosure Statement for most residential sales. Sellers must disclose known material defects — intentional concealment is actionable under fraud law.
The disclosure form covers:
Lead Paint
Required for pre-1978 homes.
Caveat Emptor Limits
Alabama's caveat emptor doctrine protects sellers from liability for defects the buyer could have discovered through reasonable inspection — but NOT for known defects that were actively concealed. Complete the disclosure form honestly.
Alabama Attorney Closing Requirement
Alabama State Bar rules require a licensed Alabama attorney to conduct real estate closings. This is not optional. The attorney handles the title search, deed preparation, and closing statement. Budget $600–$1,000 for closing attorney fees.
Alabama Transfer Tax (Deed Tax)
Alabama charges a deed tax of $0.50 per $500 of consideration (0.1%). On a $260,000 sale: $260. Jefferson County may charge a county-level deed tax — confirm with your closing attorney.
HOA
Many Birmingham-area suburbs (Hoover, Vestavia Hills, Trussville) have active HOAs. Disclose dues, special assessments, and provide CC&Rs.
Download Alabama disclosure forms and find flat fee GALMLS services.