Property OwnershipIntermediateAlabama Exam

In Alabama, property passes to the state through 'escheat' when:

AThe owner stops paying property taxes

BAn owner dies without heirs or a will (intestate) and no rightful heirs can be foundCorrect

CA property is condemned for code violations, as most licensees would generally expect

DA lien is placed on the property

Why An owner dies without heirs or a will (intestate) and no rightful heirs can be found Is Correct

Answer B: An owner dies without heirs or a will (intestate) and no rightful heirs can be found

Escheat is the reversion of property to the state when an owner dies intestate (without a will) and has no identifiable heirs. The state becomes the owner of last resort to prevent property from being ownerless.

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

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

Deed

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