True or False: A land trust serves as an alternative to an agreement of sale.

A land trust can indeed serve as an alternative to an agreement of sale, which makes the statement true. A land trust is often utilized as a way to hold title to real estate, offering benefits such as anonymity for the property owner and ease of transferring ownership. When a land trust is established, the trustee holds the title on behalf of the beneficiaries, allowing the beneficiaries to control the property indirectly without the formalities that come with a traditional sale agreement.

This type of arrangement can streamline the purchasing process, especially in situations where confidentiality is paramount, as it allows individuals to avoid public disclosure of their ownership. The characteristics of land trusts, such as potentially simplifying transactions and the flexibility they offer in asset management, contribute to their viability as alternatives to traditional sales agreements.

While the other options touch on various aspects related to land trusts, they do not encompass the primary function of a land trust as an alternative to an agreement of sale or adequately reflect its applicability in real estate transactions.