Property Ownership and Land Use Practice Question
Question
A salesperson is explaining a concept to a client involving life estates. Which statement is the most accurate exam answer? (Item 2)
Answer choices
- A. It applies only to commercial property and never to residential transactions.
- B. Identify that a life estate lasts for the measuring life and then passes to a remainderman or reversioner.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- D. It is valid only when the buyer pays cash and no lender is involved.
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