Section 11-81-245 Consent Requirements; Disclosure Statement.
Before a written assessment agreement is made, the property owner or local government must have a verified consent agreement from each existing mortgage or lien holder. The seller must also give the buyer a written disclosure about an unpaid non-ad valorem assessment.
(a)(1) Before entering into a written assessment agreement with a local government, the qualifying property owner shall provide, or the local government shall obtain, a verified copy of a written consent agreement signed by the holder of each existing mortgage or other lien on the relevant qualifying property stating that the mortgagee or other lienholder consents to the imposition of the assessment and understands that the priority of the mortgage or other lien is subordinated to the assessment lien. The form and substance of the consent agreement shall comply with the guidebook and this article. The consent agreement must be in a form that may be recorded in the recording office of the county or counties where the qualifying property is located. The consent agreement and the qualifying property owner’s assessment agreement shall be recorded in that office. (2) This subsection does not limit in any way the rights or authority of any mortgagee or other lienholder under any agreement or applicable law, except that a provision of a deed of trust, mortgage, or other agreement between a lienholder and a qualifying property owner which provides for the acceleration of any payment solely as a result of entering into an agreement to finance an assessment pursuant to this article is unenforceable if the mortgagee or lienholder executes a consent agreement pursuant to subdivision (1). (b) At or before the time a purchaser executes a contract for the sale and purchase of any qualifying property for which a non-ad valorem assessment has been levied under this article and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement in the following form, which shall be set forth in the contract or in a separate writing: “QUALIFYING IMPROVEMENTS FOR ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY, AND RESILIENCY. This qualifying property being purchased is located within the jurisdiction of a local government that has established an assessment on the qualifying property pursuant to Section 11-81-242 of the Code of Alabama 1975. The assessment is for a qualifying improvement to the property relating to energy and water efficiency, renewable energy, or resilience and is not based on the value of the qualifying property. You are encouraged to contact the county property appraiser’s office to learn more about this and other assessments that may be provided by law.