A future ownership interest that takes effect automatically when a life estate ends, held by someone other than the original grantor.
Why Remainder Interest matters on the exam
This term belongs to Property Ownership. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Remainder Interest
Every Freehold question shows why the right answer is right — and cites its source.
The future interest retained by a grantor after conveying a fee simple determinable is called a:
Right of reentry
Executory interest
Possibility of reverter
Remainder interest
Show answer & explanation
Possibility of reverter — A fee simple determinable automatically reverts upon breach of the stated condition, and the interest retained by the grantor to receive that automatic reversion is called a possibility of reverter.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
A deed grants 'a life estate to Grandmother, remainder to Grandson.' Upon Grandmother's death, title vests in:
The grantor's heirs, through a reversionary interest
Whoever Grandmother named as beneficiary in her will
The state, through the process of escheat
Grandson, automatically and immediately
Show answer & explanation
Grandson, automatically and immediately — A remainder interest automatically vests in the named remainderman upon termination of the preceding life estate, with no further conveyance, probate, or court action required.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
A life tenant may generally do which of the following without committing waste?
Demolish the main house for salvage value
Strip minerals in a way that permanently damages the remainder interest
Use the property in an ordinary manner and make routine repairs
Freely sell fee simple title free of the remainderman's interest
Show answer & explanation
Use the property in an ordinary manner and make routine repairs — A life tenant may reasonably use and maintain the property, but may not commit waste that permanently injures the future interest held by a remainderman or reversioner.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
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