In Alabama, a trust is commonly used in real estate to:
Why Hold title for estate planning, privacy, or asset protection purposes Is Correct
Answer B: Hold title for estate planning, privacy, or asset protection purposes
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.
Key Property Ownership Terms in This Question
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Key Terms to Know
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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.
State-Specific Concepts
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