Property Ownership

Which of the following correctly describes a 'remainder' interest in real property?

AThe portion of a lot left over after a subdivision
BThe future interest of a third party who will receive the property after a life estate ends✓ Correct
CThe seller's remaining equity after paying off the mortgage
DThe broker's remaining commission after splitting with the co-broker

Explanation

A remainder is a future interest in real property held by a third party (the remainderman), who will receive the property after the current possessory interest (such as a life estate) ends.

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