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!

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Which of the following is considered an encumbrance?

Zoning regulations
Mortgage
House insurance
Property tax

The correct answer is: Mortgage

A) Zoning regulations are laws that regulate how a property can be used or developed. While they may have an impact on the value of a property, they are not considered an encumbrance. B) A mortgage is a loan secured by a property, which means the property acts as collateral for the loan. This creates a legal claim against the property, making it an encumbrance. C) House insurance protects a property against risk of loss due to damage or other disasters, but it is not considered an encumbrance. D) Property tax is a payment made to the government based on the assessed value of a property. While failure to pay property taxes can also result in a legal claim against the property, it is not considered an encumbrance in and of itself.