Property Abandonment Laws In Alabama: A Full Guide

Property Abandonment Explained 101

Understanding Property Abandonment Laws in Alabama: A Comprehensive Guide
Simply put, property abandonment means that either the owner of the property or someone who previously had some form of ownership interest in the property has abandoned their ownership interest. There are many common situations where property may be abandoned. Maybe it is a home turned into a slum property, a rental house, a car abandoned by the owner, etc . It is not unusual for property to be abandoned in one of the aforementioned situations due to escalating maintenance and repair costs, unpaid taxes, or a general unwillingness of the owner to remedy the uncared for property. When property is abandoned, there are several laws that will apply to the situation. Given how common it is for property to be abandoned, it is important the abandoned property owner and some members of the community have a good understanding of what the law is.

Components of Alabama’s Abandonment Statutes

Property abandonment laws in Alabama are built around several core legal elements that state what constitutes as abandonment and how it should be handled. The key elements of these laws include the following:

1. Abandonment of Chattels

For our purposes, let’s first clarify that a chattel is personal property, as opposed to real property which is land. Under Alabama law, there are very specific legal definitions for what constitutes chattel property. For instance, a boat, motorboat or vessel with no motor and a trailer that has been a public burden is considered a "stray" and will be handled like chattel under Alabama law. However, currency is not defined as a chattel and tends to be given special treatment in terms of abandonment laws. Under Alabama Code § 35-12-1, abandoned funds in excess of $50 can be turned over to the Alabama State Treasurer if they are unclaimed for five years.

2. Abandonment of Real Property

Abandonment of real property under Alabama code section 35-10-1 is quite a bit more complex. In short, Alabama Code Section 35-10-2 defines what constitutes as possession for the use of Section 35-10-1 to apply. Whether something is abandoned is up to the discretion of those for whom the law is intended.

3. Unclaimed Wages

Under Alabama Code Section 8-22-1, owners of businesses must pay any unclaimed wages from terminated employees to the state, who will hold the money until the wages are claimed. This is not limited to a specific dollar amount. Businesses should consult an attorney about how to appropriately remit these wages.

The Abandonment Declaration Process

The process to declare property abandoned is relatively straightforward in Alabama. Typically, an official declaration of abandonment is not necessary for real property; however, it is essential for personal property. The distinction between personal and real property will become relevant as we discuss the different legal processes involved in declaring abandonment in Alabama.
When personal property is allegedly abandoned, the property owner (usually a landlord) must first provide clear notice to the owner of the property that they consider the property abandoned. A provision expressly stating what constitutes abandonment is best. If no such provision exists, the following communications may suffice: After providing the above, the provisions of Alabama Code § 35-16-30 must be followed: If the owner of the property does not claim the property within the 30 day window, the property may be deemed abandoned. Once the property is considered abandoned, the landlord must then follow the procedures set forth in § 35-16-31. The statute requires that the landlord send a written notice, by both regular and certified mail, to the last known address of the former tenant. This notification must inform the former tenant that they have 30 days to reclaim property left behind, unless the property is of minimal monetary value, in which case they have 10 days to reclaim the property.
Unfortunately, these provisions are rarely followed in practice. In fact, I have been sued by individuals who left personal property in a rental unit. Suit was filed against me for allowing them to get their property back after they were removed from the premises by a court order. In Alabama, there is no common law doctrine of abandonment. If not otherwise provided for in contract, parties can be held responsible for the property they leave behind.

Owner Rights and Responsibilities

As a property owner in Alabama, you have both rights and responsibilities when it comes to avoiding or dealing with property abandonment by tenants.
Upon execution of a residential lease or rental agreement in Alabama, a tenant becomes the legal occupant of the premises. This tenant has the right to enjoy the full use of the property for the duration of the lease, while the landlord has certain reciprocal responsibilities, including the taking on the responsibility of obtaining a certificate of occupancy that is required to lease the property. The certificate is obtained from the appropriate state or local authority and the responsibility for this depends on the municipality in which the property is located.
It is important to note that a residential lease is valid and enforceable in Alabama whether or not the landlord previously obtained a certificate of occupancy. Therefore, a tenant’s rental obligation or the validity of a lease cannot be challenged by the landlord on the basis that the landlord had failed to obtain the required occupancy permit.
The validity of a lease or rental agreement will expire at the end of the stated rental period, unless the agreement provides for a renewal term, or unless it is extended by a written agreement of the parties. Failure by the tenant to pay rent on the due date, or refusal by the tenant to surrender possession of the premises at the expiration of the rental term, constitutes a default under the rental agreement. To resolve a default of a lease or rental agreement, the landlord may either file a summary action for ejectment, as discussed below, or buy or lease a new property in order to find a more responsible tenant.
A tenant who vacates the property prior to the expiration of the lease is considered a holdover tenant. In this case, the landlord may consider the tenant to be in default of the rental agreement and there are several options to resolve the situation. As a matter of common practice, in resolving the abandonment, the landlord may elect to either (1) terminate the lease or (2) accept a new rental agreement with a new tenant and hold the holdover tenant responsible for the rent for the remainder of their agreement.
Under the Alabama Residential Landlord and Tenant Act, absent a prior vacancy lease provision, a landlord must make reasonable efforts to re-rent an abandoned unit so that the original tenant is only required to pay for the costs of re-renting the apartment if the unit is re-rented prior to the end of the lease term.
If the tenant refuses to leave the rental unit when they are supposed to, or if they fail to pay the rent for the remainder of the term, then the landlord may have to file for ejectment in the appropriate court.
Upon a tenant’s failure to vacate the unit after the expiration of the lease term or upon the tenant’s failure to pay rent, the landlord may file an action for ejectment in the court of limited jurisdiction for the county or municipality where the property is located. The court will review the matter and enter a judgment for possession or eviction against a tenant who has failed to pay rent or who has not vacated the property.
The landlord or their representative must physically remove the tenant from the property. Importantly, a landlord does not have the authority to personally evict or dispossess a tenant without a court order.
The action of ejectment is intended to provide a remedy for landlords against tenants who refuse to vacate the premises after the lease expires or the tenant defaults in the payment of rent. A landlord cannot rely on self-help tactics to remove the tenant from the premises.

Tenants and Occupants

Tenants and lawful occupants are clearly affected by property abandonment in Alabama, and they do have some legal rights and recourse. The term "tenant" generally means "one who rightfully occupies premises owned by another and pays rent for the use and occupation of the same." 867 So. 2d 382 (Ala. Civ. App. 2003). Thus, tenants are protected by Alabama’s Uniform Residential Landlord and Tenant Act (URLTA). URLTA governs a few things, such as security deposits, notices to vacate and maintenance and repair obligations. Furthermore, URLTA requires a lessor to give the tenant notice before the lessor can enter the dwelling unit for a variety of reasons including, but not limited to, "examining the premises," "making necessary or agreed repairs" and "supplying necessary or agreed services." Acts 1977, No. 483, p. 670, § 1; Acts 1983, No. 83-551, p. 866, § 1.
The legal rights of a lawful occupant however are somewhat more complicated. Landlords in Alabama do not have to give lawful occupants notice before entering a dwelling unit . However, if the occupant is paying rent, the occupant has gained rights and protections similar to those of a tenant, and it would seem that a lessor would have to abide by URLTA. This seems to be implied in case law, but has no clear support in Alabama’s statutes. 865 So. 2d 1174 (Ala. Civ. App. 2003). Unlawful occupants pay no rent and are basically squatters. Unlawful occupants have no legal rights and are subject to eviction at any time with no cause by the lessor. Taking all of this into account, when a dwelling unit is abandoned by the tenants, the first concern should be getting a new tenant. That said, an entry into the dwelling unit by the lessor will likely not require the same amount of justification that would be necessary to enter a dwelling unit with active tenants so long as the lessor maintains the place in a habitable fashion and does not take or destroy any of the tenant’s property. These rights continue until the lease is terminated or moved to eviction.

Reclaiming Abandoned Property

To reclaim abandoned property, the first step is ensuring that the property is genuinely abandoned. This can be determined through various means, such as an inspection of the property, searching public records for the last known owner, and consulting with local authorities about any potential ownership claims. Once you have confirmation that the property is abandoned, there are a few possible courses of action you could pursue.
One way to reclaim abandoned property is through a legal process known as adverse possession. For property to qualify for adverse possession, it must be continuous, exclusive, and open for at least ten years. The claimant must also demonstrate that they possess the property openly and without permission for the duration of the period required by law. If successful, the claimant can gain title to the property.
If adverse possession is not an option, the next best solution is to contact an attorney or title company to help research the history of your intended land use of the property. The attorney or title company may be able to identify potential claimants who might have an ownership interest in the property or who may have filed a claim in a prior bankruptcy proceeding. If they are able to identify an owner or a potential owner of the property, you may have the option to negotiate a purchase or lease with the owner or seek to evict the owner through legal means.
If all of these avenues fail, you can always abandon the property to the county or municipality where it is located. Many counties and municipalities have programs in place that allow for property owners to donate their property to the county or municipality in exchange for waiving delinquent property taxes, forgiving other liens, and/or releasing the property from lien foreclosure.

Lawyers and Professional Help

Throughout this guide, we’ve provided a number of helpful links and associations you can turn to if you’re looking for more information about property abandonment laws in Alabama. Many people with experience in the field can help you locate resources or point you in the direction of someone who can. Here are some additional legal assistance organizations to keep in mind:
National Association of Consumer Advocates (NACA) This is a non-profit association of attorneys and consumer advocates from around the country who commit their time (free of charge) to helping consumers nationwide fight fraudulent acts and practices:
Alabama Association for Justice The Alabama Association for Justice is an association committed to ensuring that lawyers have the training and resources they need in order to represent personal injury , wrongful death, and consumer protection victims:
In addition, you can search for assistance in your area by searching the directory at the State Bar of Alabama:
If you’re not sure what type of legal help you require, consider reaching out to the American Bar Association:
The State of Alabama offers free legal aid to those who qualify. Visit their website to determine if you need assistance:
Finally, if you’re in need of any legal resources or have questions about property abandonment laws in Alabama, consider reaching out to our firm for help.