Property Ownership and Land Use Practice Question
Question
An escrow officer requests clarification from the broker involving life estates. Which statement is the most accurate exam answer? (Item 102)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. Identify that a life estate lasts for the measuring life and then passes to a remainderman or reversioner.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
B. Identify that a life estate lasts for the measuring life and then passes to a remainderman or reversioner.
Explanation
The correct answer is B because life estates requires candidates to identify that a life estate lasts for the measuring life and then passes to a remainderman or reversioner. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: easy
- Domain: Property Ownership and Land Use
- Objective: life estates