Property OwnershipIntermediateAlabama Exam

Escheat in Alabama means that when a person dies intestate (without a will) and has no heirs, their property:

AIs sold at auction

BPasses to the state of AlabamaCorrect

CPasses to the nearest neighbor

DPasses to the county government

Why Passes to the state of Alabama Is Correct

Answer B: Passes to the state of Alabama

Escheat is the legal process by which property of a person who dies intestate with no heirs reverts to the state. In Alabama, this means the property passes to the state.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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Key Terms to Know

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.