Property Ownership

Permafrost in Alaska affects real property primarily because it:

AGives the government authority to acquire the land without compensation
BCan cause structural damage as frozen ground thaws and destabilizes foundations✓ Correct
CAutomatically qualifies the property for a state-funded hazard discount
DCreates a federal easement across the property for environmental study

Explanation

Permafrost — permanently frozen subsoil — can thaw due to climate change or construction, causing ground settlement, foundation damage, and slope instability. In Alaska, permafrost is a material fact that must be disclosed to buyers as it substantially affects property value and usability.

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