Alabama Real Estate Practice Exam

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What is required of the seller to clear the title?

Inspection of property
Payment of broker's commission
Removal of liens and other encumbrances
Transfer of the title insurance to buyer

The correct answer is: Removal of liens and other encumbrances

To clear the title, the seller must remove any liens or encumbrances on the property that would hinder the transfer of the title to the buyer. This ensures that the title will be free and clear for the buyer to take ownership without any legal or financial complications. Option A, inspection of the property, is not directly related to clearing the title. Option B, payment of broker's commission, is a separate transaction between the seller and their real estate agent, and does not involve the title. Option D, transfer of title insurance, is not a requirement for clearing the title, but rather a form of protection for the buyer in case any issues with the title arise after the sale.