An Alabama property located in a Special Flood Hazard Area (SFHA) requires:
Why Mandatory flood insurance for federally backed mortgages Is Correct
Answer B: Mandatory flood insurance for federally backed mortgages
Exam Tip: Environmental
Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.
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Related Alabama Questions
- A property located in a Special Flood Hazard Area (SFHA) must obtain flood insurance if:Environmental
- A property located in a FEMA Special Flood Hazard Area (SFHA) has at least a ___% chance of flooding in any given year.Environmental
- The National Flood Insurance Program (NFIP) requires flood insurance for properties in Special Flood Hazard Areas when:Environmental
- Private mortgage insurance (PMI) is typically required in Alabama when the borrower's down payment is less than:Finance
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:Finance
- A buyer's lender requires a lender's title insurance policy. Who typically pays for this in Alabama?Escrow & Title
- The Alabama License Law requires that all real estate transactions be conducted:Alabama License Law
- Alabama regulations require a broker to maintain their trust account in a financial institution located in:Trust Funds
Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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