Alabama Real Estate Practice Exam

What are the requirements for a lease to be valid?

1. Mutual agreement, legal purpose, and consideration

2. Public posting for 30 days

3. Approval from a government agency

4. It must be notarized

The correct answer is: Mutual agreement, legal purpose, and consideration

A lease must have three key elements to be valid mutual agreement between both parties, a legal and lawful purpose (such as renting a property), and consideration (meaning something of value is being exchanged, such as money or services). Option B is incorrect because public posting is not a requirement for a lease to be valid. Option C is incorrect because while certain leases may require approval from a government agency, it is not a general requirement for all leases. Option D is also incorrect because a lease does not necessarily have to be notarized to be valid. Therefore, the only correct answer is A, as it lists all three necessary elements for a valid lease.