Sarah owns a life estate in a property with her son John as the remainderman. Sarah wants to sell the property to pay for medical expenses. What are her rights?
Correct Answer
A) She can sell her life estate, which ends when Sarah dies
A life tenant can sell their life estate interest, but the purchaser only acquires rights for the duration of the life tenant's life. When Sarah dies, John (the remainderman) will receive the property in fee simple, and the purchaser's interest will terminate.
Why This Is the Correct Answer
Option A correctly states the fundamental principle of life estate transfers. Under Canadian property law, a life tenant like Sarah owns only a life interest in the property, not the fee simple. She can legally transfer this interest to a third party, but the buyer acquires only what Sarah owns - a life estate that terminates upon her death. At that point, John's remainder interest becomes possessory, and he receives the property in fee simple. This principle protects the remainderman's future interest while allowing the life tenant some flexibility to monetize their current interest.
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