Property OwnershipIntermediateArizona Exam

An Arizona property owner who voluntarily transfers their real property to a nonprofit conservation organization by deed while retaining the right to live there is creating a:

AConservation easement
BLife estate with a remainder to the nonprofitCorrect
CFee simple transfer with a lease-back
DTenancy at will

Why Life estate with a remainder to the nonprofit Is Correct

Answer B: Life estate with a remainder to the nonprofit

When an owner transfers fee title while retaining the right to occupy the property for their lifetime, they are creating a life estate (they hold the life estate) with a remainder interest in the recipient (the nonprofit).

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.

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