Property Ownership

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

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

Explanation

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.

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