Certified Residential Appraiser Practice Exam

Which interest allows an owner to occupy a property for a designated lifespan of another?

1. Lease fee interest

2. Life estate

3. Affirmative easement

4. Easement appurtenant

The correct answer is: Life estate

The correct answer is life estate because it represents an ownership interest that allows an individual, known as the life tenant, to occupy and utilize a property for the duration of their life. Upon the death of the life tenant, the property interest automatically reverts to the grantor or a designated remainder beneficiary, which distinguishes it from other types of property interests. In contrast, lease fee interest refers to the right to lease a property and receive rental income, not an occupancy interest limited by a lifespan. Affirmative easement provides certain rights to utilize a portion of another's property but does not grant the right to occupy the property as a whole. Easement appurtenant involves a right benefiting a particular parcel of land, allowing access or use of another property, but similarly does not confer occupancy rights tied to a lifespan. Thus, the nature of a life estate is unique in its specific focus on occupancy for the lifetime of the owner or tenant.