Property OwnershipIntermediateCalifornia Exam

What is a life estate?

AInsurance on a property, consistent with common law property ownership principles
BAn ownership interest that lasts for the life of a specified personCorrect
CA 99-year lease, per standard California real property conventions
DA type of trust, under standard California property ownership law

Why An ownership interest that lasts for the life of a specified person Is Correct

Answer B: An ownership interest that lasts for the life of a specified person

A life estate is an ownership interest that exists only for the duration of a specified person's life (the life tenant). When that person dies, the property passes to the remainderman.

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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