Property Ownership and Land Use Practice Question
Question
An investor is comparing two properties involving life estates. Which statement is the most accurate exam answer? (Item 42)
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