Property OwnershipIntermediateAlabama Exam
In Alabama, a homestead exemption reduces the assessed value of a primary residence for property tax purposes. The basic exemption amount is:
A$2,000
B$4,000Correct
C$10,000
D$25,000
Why $4,000 Is Correct
Answer B: $4,000
Alabama's basic homestead exemption reduces the assessed value of an owner-occupied primary residence by $4,000 for state property taxes and $2,000 for county property taxes.
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
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Math Concepts
State-Specific Concepts
Homestead Exemption
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