Alabama Real Estate Practice Exam

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Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In a shared equity loan, who does the borrower share equity with?

Just the bank
An investor, seller, or lender
Only with government agencies
No one, it's a solo investment

The correct answer is: An investor, seller, or lender

A shared equity loan involves a borrower sharing equity with a third party, such as an investor, seller, or lender. Option A is incorrect because the borrower does not only share equity with the bank. Option C is incorrect because the borrower can also share equity with private investors, not just government agencies. Option D is incorrect because the whole purpose of a shared equity loan is for the borrower to share equity with another party, so it is not a solo investment.