Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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 a sale-and-leaseback transaction?

A method to lease a property before buying it
A way to sell a property and then rent it back
A financing option for developers only
A loan for purchasing rental properties

The correct answer is: A way to sell a property and then rent it back

A sale-and-leaseback transaction is a real estate strategy where the owner of a property sells it and then leases it back from the new owner. This allows the original owner to free up capital and continue to use the property, while the new owner can generate rental income. A is incorrect because it refers to leasing a property before buying it, which is not the same as a sale-and-leaseback transaction. C is incorrect because this type of transaction can be used by any owner, not just developers. D is also incorrect because a loan is not involved in a sale-and-leaseback transaction.