Property OwnershipIntermediateAlaska Exam

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 foundationsCorrect
CAutomatically qualifies the property for a state-funded hazard discount, in general
DCreates a federal easement across the property for environmental study

Why Can cause structural damage as frozen ground thaws and destabilizes foundations Is Correct

Answer B: Can cause structural damage as frozen ground thaws and destabilizes foundations

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.

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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