National Real Estate Exam (PSI)Property OwnershipHard
A grantor executes a deed stating: 'To Bob for life, then to Carla and her heirs.' Bob later dies. What best describes Carla's interest and what happens to the property at Bob's death?
- ACarla holds a contingent remainder that requires Bob's prior consent to take effect
- BCarla holds a life estate pur autre vie measured by Bob's life
- CCarla holds a reversion, and the property returns to the original grantor's estate
- DCarla holds a vested remainder, and fee simple title passes to her automatically
Show answer & explanationAnswer & explanation
Correct answer: D. Carla holds a vested remainder, and fee simple title passes to her automatically
Because the deed names Carla as the specific future owner (not the grantor), her interest is a remainder rather than a reversion. Since her right to take the property is certain and not conditioned on any event other than Bob's death, it is a vested remainder, and full fee simple title passes to her automatically upon Bob's death.
Why the other options are wrong
- A. Incorrect — nothing in the deed makes Carla's interest conditional on Bob's consent or any other event.
- B. Incorrect — a life estate pur autre vie is measured by another's life span, not what Carla holds; she receives a full fee simple remainder.
- C. Incorrect — a reversion returns the property to the grantor, not to a third party named in the deed.
Remainder Interest
A future interest created in a third party (not the grantor) that becomes possessory automatically when a preceding life estate ends.
- Vested remainder: certain to take effect, no conditions attached
- Contingent remainder: depends on an uncertain future event
- Reversion: future interest that returns to the grantor, not a third party
Memory trick: Remainder REMAINS with someone else; Reversion REVERTS back to the grantor.