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!

Practice this question and more.

What is the primary intention behind a Ground lease?

For the tenant to use the land without building
For the landlord to build structures for the tenant
Rental of land for the tenant to build on it
For short-term rental agreements

The correct answer is: Rental of land for the tenant to build on it

Ground leases are primarily used for long-term use of land, typically for a period of 99 years or more. Option A is incorrect because a ground lease typically involves building on the land. Option B is incorrect because it does not align with the purpose of a ground lease, which is for the tenant to build on the land. Option D is incorrect because ground leases are usually long-term agreements, not short-term. Overall, the primary intention behind a ground lease is for the tenant to have the right to use and develop the land for a longer period of time without having to purchase it outright.