A property owner conveys fee simple title to a buyer but reserves a life estate for herself in the deed. After the owner’s death, the buyer takes full possession. Which statement accurately reflects the legal effect of the reservation?
Correct Answer
C) The buyer holds a remainder interest that became possessory upon the termination of the life estate
When a grantor conveys fee simple but reserves a life estate, the grantee receives a remainder interest—the future interest that becomes possessory upon the natural termination of the life estate (i.e., the life tenant’s death). This is a vested remainder subject to open only if contingent on other conditions (not present here). Option A is incorrect: fee simple defeasible requires a condition subsequent or limitation (e.g., 'so long as'), not a life estate reservation. Option B misstates the interest: a reversion arises when the grantor retains *no* estate (e.g., conveying a life estate outright); here, the grantor reserved a life estate, so no reversion existed—instead, the buyer held a remainder. Option D is wrong because joint tenancy requires four unities (time, title, interest, possession) and explicit intent—neither present in a life estate reservation.
Why This Is the Correct Answer
When a grantor conveys fee simple but reserves a life estate, the grantee receives a remainder interest—the future interest that becomes possessory upon the natural termination of the life estate (i.e., the life tenant’s death). This is a vested remainder subject to open only if contingent on other conditions (not present here). Option A is incorrect: fee simple defeasible requires a condition subsequent or limitation (e.g., 'so long as'), not a life estate reservation. Option B misstates the interest: a reversion arises when the grantor retains *no* estate (e.g., conveying a life estate outright); here, the grantor reserved a life estate, so no reversion existed—instead, the buyer held a remainder. Option D is wrong because joint tenancy requires four unities (time, title, interest, possession) and explicit intent—neither present in a life estate reservation.
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