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Alabama · Ala. Code §§35-10-90–35-10-98Alabama mortgage satisfaction after payoff: the 14-day payoff statement and the 30-day satisfaction

The Alabama Residential Mortgage Satisfaction Act covers mortgages on Alabama property used for personal, family or household purposes with one to four dwelling units (Ala. Code §35-10-90(a)). After a notice with the borrower's name, the address for the statement and the account number, the lender issues a payoff statement within 14 days (§35-10-91(b)–(c)). The lender submits a satisfaction for recording within 30 days after receiving full payment, once it has no obligation to advance more; an equity line is paid only after it has been closed (§35-10-92(a)). If the lender misses the 30 days, the mortgagors send a signed written request by a method with proof of receipt; if the satisfaction still isn't submitted within 21 days, the lender owes them $500 plus actual economic damages (§35-10-92(b)–(d)). For other mortgages, the holder enters satisfaction on written request and forfeits $200 after 30 days (§§35-10-27, 35-10-30).

The rules

  1. 1. Scope (§35-10-90(a))

    Alabama homes with one to four units, for personal, family or household use.

  2. 2. Payoff statement (§35-10-91(c))

    Within 14 days after a notice that meets §35-10-91(b).

  3. 3. Satisfaction (§35-10-92(a))

    Submitted for recording within 30 days after full payment; equity line closed first.

  4. 4. Penalty (§35-10-92(c))

    $500 if still missing 21 days after the mortgagors' written request.

  5. 5. Other mortgages (§35-10-30)

    $200 if not entered 30 days after a written request.

What the TC can do

  • Order the payoff statement with the account number at least 14 days before closing.
  • For a home equity line, include the borrower's request to close the line with the payoff.
  • Add a task 30 days after payoff to check the probate records for the satisfaction.
  • If it's missing, have the sellers send a signed request by a method with proof of receipt.

Questions about Alabama mortgage satisfactions

How long does an Alabama lender have to record a mortgage satisfaction?

For a residential mortgage, it submits the satisfaction for recording within 30 days after receiving full payment (Ala. Code §35-10-92(a)).

What if the satisfaction is never recorded?

After the 30 days, the mortgagors send a signed written request; if the lender doesn't comply within 21 days, it owes $500 plus actual economic damages (Ala. Code §35-10-92(c)–(d)).

Related guides

Add the payoff request and the 30-day satisfaction check as tasks in ClosingCode.

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Source: Code of Alabama §§35-10-27, 35-10-30, 35-10-90–35-10-92 (alison.legislature.state.al.us, read October 28, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.