Alabama's 40% Title Credit

Alabama filed rate schedules commonly carry a reissue credit and a refinance credit, each worth 40%. Both are routinely missed, for a mundane reason: nobody can find the prior policy.

The reissue credit — purchases

Applies where an owner's policy was previously issued to the seller covering the same property, and a new owner's policy is being issued to you. On a $300,000 purchase with a $975 premium, a 40% credit is $390.

The refinance credit — refinances

Applies where a prior loan policy was issued on the same property with the same borrower. Same 40%.

What you have to produce

A copy of the prior policy — jacket and schedules, not just the cover page. It must have been issued by an insurer licensed to write title insurance in Alabama. A commitment is not a policy, and a HUD-1 showing that a premium was paid is not a policy either.

Why it goes unclaimed

Sellers rarely keep their title policy anywhere they can find it. It was issued at a closing years ago, in a stack of documents, and it has no annual renewal to remind anyone it exists. By the time the question comes up the file is a week from closing and nobody wants to chase it.

How to actually claim it

Ask early — at contract, not at closing. Sellers, look for the closing package from when you bought. If you financed, your lender's file may contain the loan policy. If the same title agency handled the earlier closing, they may still have it archived.

It is one document and a few hundred dollars. Worth the phone call.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.