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 is the primary purpose of a temporary loan in real estate?

To replace a traditional mortgage
To provide funds when they are not immediately available to close a sale
To consolidate debt
To finance home renovations

The correct answer is: To provide funds when they are not immediately available to close a sale

A temporary loan in real estate is typically used to bridge the gap between the buying and selling of a property. This is especially useful when the funds for a new purchase are not immediately available, but the borrower cannot afford to wait for the sale of their current property to close. Therefore, options A, C, and D would not be the primary purpose of a temporary loan in real estate.