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"Remainder" in real estate refers to the interest or ownership of a property that will pass on to another person (called the "remainderman") after the current owner (called the "life tenant") passes away. Think of it like a relay race where the property is the baton, and the life tenant hands it over to the remainderman when they're no longer around.
Let's say Ms. Smith owns a house and has a life estate. This means she has the right to live in and use the house for her entire life. She decides to name her niece, Jenny, as the remainderman. When Ms. Smith passes away, Jenny will automatically become the owner of the house. The interest that Jenny has in the house while waiting for it to be passed on to her is called the "remainder."
"A Deep Dive for Real Estate Agents"
It's important to note that there are different types of remainders, including vested remainders and contingent remainders. A vested remainder is one that is certain to take effect in the future, while a contingent remainder is one that is dependent on a certain condition being met.
In addition, when creating a remainder interest, it's important to carefully consider the language used in the legal documents to ensure that the intentions of the grantor are clear and legally enforceable.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land of estates and homes so grand,
There's a term, my friend, you should understand.
"Remainder," it's called, and here's what it means,
A future gift, wrapped with a bow and some strings.
When someone has a house and their life gets to the end,
The house needs a new owner, a relative or a friend.
The life tenant's time has come to pass,
And the remainderman steps in, ready for the task.
So the house finds a new owner, all nice and neat,
The remainderman's the one who takes the seat.
A life estate, a remainder, these terms may seem odd,
But in the world of real estate, they're as common as a nod.