Skip to content
ClosingCodeClosingCode
ENES

Alabama · Ala. Code §§35-4-75, 35-4-76Alabama recorded purchase contracts and options: when they stop clouding the title

When an Alabama contract to sell land doesn't say when the deed is to be delivered, delivery is due within a reasonable time and never more than one year after the contract date (Ala. Code §35-4-75(a)). If the contract or an extension was recorded and five years have passed since the delivery date – the contract's date or that one-year limit, whichever is longer – with no suit for specific performance or to foreclose the buyer's interest and no lis pendens filed, a lienholder, purchaser for value or mortgagee may conclusively presume the contract was abandoned and the named buyer has no equitable claim; that doesn't apply while the buyer or a successor is in actual possession (§35-4-75(b)). An option to purchase land – other than a tenant's option within the lease term or a grantor's repurchase option in a deed – can't last more than 20 years, and an option with no stated limit ends two years after it was created (§35-4-76(a)). A recorded option stops being notice one year after it expires, unless a recorded instrument shows it was exercised or the option holder is in possession (§35-4-76(b)–(c)).

The rules

  1. 1. Deed delivery (§35-4-75(a))

    Silent contract: a reasonable time, at most one year.

  2. 2. Abandonment (§35-4-75(b))

    Recorded contract presumed abandoned five years after delivery was due, with no suit or lis pendens.

  3. 3. Option limits (§35-4-76(a))

    No more than 20 years; two years if the option states no limit.

  4. 4. Expired option (§35-4-76(b))

    Recorded option stops being notice a year after it expires.

  5. 5. Possession (§§35-4-75(b), 35-4-76(c))

    None of this applies while the claimant is in possession.

What the TC can do

  • When the title commitment lists a recorded contract, memorandum or option, note its dates and send them to the title company.
  • Ask whether anyone claiming under it is in possession – that keeps the claim alive.
  • If it is still live, ask the title company what release or quitclaim it needs before closing.

Questions about recorded contracts in Alabama

Does an old recorded purchase contract still cloud an Alabama title?

Not after five years past the deed delivery date with no suit or lis pendens – a purchaser for value may then presume it was abandoned, unless the buyer under it is in possession (Ala. Code §35-4-75(b)).

How long can an Alabama option to purchase last?

At most 20 years, or two years if the option sets no limit, except a tenant's option within the lease or a grantor's repurchase option (Ala. Code §35-4-76(a)).

Related guides

Add a task in ClosingCode to clear any recorded contract or option on the title commitment before closing.

Start free trial

Source: Code of Alabama §§35-4-75 and 35-4-76 (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.