Ala. Code §§ 35-12A-1 to 35-12A-15 § 35-12A-11
Disposition of Proceeds of Sale.
Operative Text
(a) The manufactured dwelling community owner may deduct from the proceeds of the sale any of the following: (1) The reasonable or actual cost of notice, storage, and sale as provided in this chapter. (2) Unpaid rental fees, but only to the extent that the manufactured dwelling community owner’s lien has priority over the lien of any applicable lienholder. (3) Reasonable attorneys’ fees and costs. (b) After deducting the amounts listed in subsection (a), the manufactured dwelling community owner shall remit to the county tax collecting official any property taxes and/or other fees due and shall then remit the remaining proceeds, if any, to the lienholders, if any, to the extent of any unpaid balance owed on any liens on the manufactured dwelling. (c) After deducting the amounts listed in subsections (a) and (b), as applicable, the manufactured dwelling community owner shall remit to the tenant or owner the remaining proceeds, if any, together with an itemized accounting. If the tenant or owner cannot be found, after due diligence, the remaining proceeds may be interpleaded in any court with jurisdiction or be held and deposited in accordance with Article 2A of Chapter 12.
Under Alabama Code § 35-12A-11, when a manufactured dwelling is sold by a community owner (typically following an abandonment or lien-enforcement process), the proceeds are distributed in a specific order. First, the community owner may recover costs such as notice, storage, sale expenses, certain unpaid rent, and reasonable attorneys' fees. After those deductions, property taxes and lienholder balances are paid, and any remaining funds must be returned to the tenant or dwelling owner along with an itemized accounting. If the tenant or owner cannot be located after a good-faith search, the leftover proceeds may be paid into court or deposited under Alabama's unclaimed property rules.
Plain English — not legal advice.
Community owners operating under § 35-12A-11 generally maintain detailed records of every cost incurred during the notice, storage, and sale process, since only documented and reasonable expenses may be deducted from sale proceeds. Compliant operators pay county tax obligations and satisfy lienholder claims before distributing any remainder, and they prepare an itemized accounting to accompany any funds returned to the tenant or dwelling owner. When a tenant or owner cannot be located despite good-faith efforts, operators typically either interplead the funds in a court with jurisdiction or deposit them in accordance with Alabama's unclaimed property statutes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 35-12A-11 of the Alabama Code gives tenants and dwelling owners the right to receive any sale proceeds that remain after the community owner's allowable deductions, taxes, and lienholder payments have been satisfied, along with a written itemized accounting of how the money was applied. If you believe deductions were unreasonable or that funds were not properly remitted, tenant-rights organizations or a housing attorney can help you evaluate whether the accounting complies with the statute. If you were not located during the distribution process, funds may have been deposited with a court or held as unclaimed property under Alabama law, which provides a separate path for recovering those amounts.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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