Alabama Real Estate Purchase and Sale Agreement (Investor PDF)
An investor-ready purchase and sale agreement drafted for Alabama transactions, plus a plain-English summary of what Alabama law expects in a residential purchase contract. Free PDF, no signup required.
Alabama Purchase and Sale Agreement
Free PDF • Updated July 2026
Part of our free real estate investor forms library.
What Alabama Requires in a Purchase Contract
These are the contract and disclosure requirements our research identified for Alabama residential transactions, with statute citations. Requirements change; always confirm the current rule before closing.
Federal Lead-Based Paint Disclosure Verbatim language required
42 U.S.C. 4852d; 40 C.F.R. Part 745 Subpart F (745.113); 24 C.F.R. Part 35 Subpart A
Pre-1978 housing: contract must contain the Lead Warning Statement, seller's disclosure of known lead paint/hazards, records statement, buyer's 10-day inspection opportunity, and signed acknowledgments
Applies to: pre-1978 residential
No Statutory Seller Disclosure Form - Caveat Emptor
Common law; Fennell Realty Co. v. Martin, 529 So. 2d 1003 (Ala. 1988); Blaylock v. Cary, 709 So. 2d 1128 (Ala. 1997)
Alabama applies caveat emptor to used residential property - no disclosure form is required; exceptions: seller must disclose known defects affecting health or safety, must answer truthfully if buyer asks directly, and must disclose where a fiduciary relationship exists
Applies to: all used residential (new construction carries builder implied warranty of habitability instead)
Wholesale Transaction Disclosures (in/with contract)
Ala. Code 8-42-1 through 8-42-3 (Act 2023-201, SB 228), effective August 1, 2023
Buyer intending to assign for a fee must disclose in writing: (1) to seller, intent to market its equitable interest BEFORE commencing any marketing; (2) to any potential subsequent purchaser/assignee, the nature of the buyer's equitable interest; (3) to seller, the effective date of any assignment at least 3 business days before it takes effect
Applies to: single-family residential purchase contracts the buyer intends to assign (assignment, novation, or similar transfer) for a fee
Alabama Regulates Wholesaling
Ala. Code 8-42-1 through 8-42-3 (Act 2023-201, SB 228), effective August 1, 2023
Disclosure regime, not licensing: wholesaler may lawfully acquire and assign an equitable interest in single-family residential property for a fee ONLY IF it makes the three written disclosures (intent to market before marketing begins; nature of equitable interest to end buyers; 3-business-day advance notice of assignment effective date to seller). Violation is a Class C misdemeanor plus civil liability to the person owed disclosure equal to THREE TIMES the assignment fee. Same act voids and prohibits recording 40-year 'unfair service agreements' (NTL-style right-to-list agreements)
See how Alabama compares in our wholesaling laws by state table.
Alabama Closing Practice at a Glance
| Deed convention | General warranty deed is customary for arm's-length residential sales; Alabama statutory warranty deed ('grant, bargain, sell' - Ala. Code 35-4-271, limited covenants) is also widely used, especially in investor and builder deals |
| Transfer tax | Deed recording (transfer) tax, Ala. Code 40-22-1: $0.50 per $500 of value; Real Estate Sales Validation Form (RT-1) must accompany the deed at recording |
| Customary payer | negotiable - buyer customarily pays in much of the state; seller pays in some counties (e.g., Jefferson/Shelby custom); allocate expressly in contract |
| Attorney closing | Attorney required or customary. Attorney closing not required (title companies, approved attorneys, or banks close), BUT under Ala. Code 34-3-6(c) only a licensed Alabama attorney or a party with a proprietary interest may prepare deeds/mortgages - so conveyance documents are attorney-prepared by custom and every recorded instrument carries a 'This instrument prepared by' statement |
| Witness and notary | Deed must be signed by the grantor and either acknowledged before a notary public OR attested by one witness (two witnesses if grantor signs by mark) - Ala. Code 35-4-20; notarized acknowledgment with no witnesses is standard practice; recorded with the county probate judge |
More Investor Resources
Disclaimer: This template and summary are provided free for reference and educational purposes. Clearway Home Buyers is not a law firm and does not provide legal advice, and no attorney-client relationship is created by downloading or using these forms. Real estate law varies by state and by transaction. Review any form with a licensed Alabama attorney before use. Read the full disclaimer.
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