Escrow & TitleIntermediateAlabama Exam

In a sale-leaseback arrangement, the seller:

ABuys back the property after 5 years

BSells the property and immediately leases it back from the new ownerCorrect

CLeases the property before selling it

DSells and then rents an adjacent property, under typical circumstances

Why Sells the property and immediately leases it back from the new owner Is Correct

Answer B: Sells the property and immediately leases it back from the new owner

In a sale-leaseback, the seller sells the property and simultaneously enters into a lease to remain in possession as a tenant, providing the seller with capital while retaining use of the property.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.