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!

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What does a blanket mortgage cover?

A single piece of real estate
Two pieces of real estate
More than one piece of real estate
Only commercial properties

The correct answer is: More than one piece of real estate

A blanket mortgage is a type of mortgage that covers multiple properties as collateral for a single loan. This means that if one of the properties included in the blanket mortgage fails to meet loan requirements, the lender can still foreclose on the entire portfolio. Option A is incorrect because a blanket mortgage is not just limited to covering a single property. Option B is incorrect because there can be more than two properties covered by a blanket mortgage. Option D is incorrect because blanket mortgages can cover both residential and commercial properties. Therefore, the correct answer is C, as it accurately reflects the scope of a blanket mortgage.