Property OwnershipIntermediateAlaska Exam

In Alaska, a 'remainder interest' in real estate refers to:

AThe portion of a property not covered by a mortgage, under standard practice
BThe future interest that passes to a third party when a life estate endsCorrect
CThe remaining balance on a seller-financed loan
DThe unsold portion of a subdivided lot

Why The future interest that passes to a third party when a life estate ends Is Correct

Answer B: The future interest that passes to a third party when a life estate ends

A remainder is a future interest in property held by a third party (the remainderman) that becomes possessory when a prior estate (such as a life estate) ends. For example, if land is conveyed 'to A for life, then to B,' B holds a remainder interest.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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