Alabama Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

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

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.

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To consolidate debt

To finance home renovations

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