Closing a property in Huntsville.

Deed tax is charged on equity

Alabama charges deed tax at $0.50 per $500 of value. When the deed and the mortgage are recorded together — which is what happens on a financed purchase — Madison County calculates it on the down payment or equity rather than the purchase price.

Buy at $300,000 with $240,000 financed and the deed tax is calculated on $60,000: $60. Finance the whole price and it floors at fifty cents. Any estimate quoting you $300 on that transaction is applying the rate to the wrong figure.

Mortgage tax

$0.15 per $100 financed, rounded up to the next full $100. A $240,000 loan carries $360. On most Huntsville purchases this is the largest single tax on the settlement statement.

Recording at the Probate Court

Madison County charges a flat fee for the first page of a document and a smaller per-page fee thereafter, applied to the deed and the mortgage separately. Every deed must also be accompanied by an RT-1 real estate sales validation form, which carries its own page fee. Indexing beyond two names on either side adds a small charge per name.

Title premium varies by underwriter

Alabama is file-and-use, so the premium depends on which underwriter your file is written through. Our calculator quotes the Stewart Title Guaranty schedule. A prior policy on the property may qualify the transaction for a 40% reissue or refinance credit — always worth checking.

Huntsville and North Alabama

We close throughout Madison County and the surrounding North Alabama market. If the property sits in a neighbouring county, the state taxes are identical — only the recording fees change.