Property Ownership
In Maryland, a 'remainder interest' in real property is:
AThe unpaid balance on a mortgage
BA future interest that takes effect after a prior estate (such as a life estate) ends✓ Correct
CThe seller's equity remaining after paying off a mortgage
DAn easement that remains after property is subdivided
Explanation
A remainder interest is a future interest created in a third party (remainderman) that takes effect after a preceding estate (typically a life estate) terminates.
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Key Terms to Know
Life Estate
A freehold interest in real property that lasts only for the duration of a specified person's life.
EasementA non-possessory right to use another person's land for a specific purpose.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
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