Virginia Real Estate Level 1 Pre-License (PL) Foundations Practice Test

The ownership interest that has a future interest after a life estate is called a remainder interest. This type of interest is created when a property is conveyed to one party for their lifetime, after which the property is designed to go to another party. The party that receives the property after the life estate holder passes away holds the remainder interest.

This is an important concept in property law, as it differentiates between the current rights of the life tenant (the individual benefiting from the life estate) and the future rights of the remainder beneficiary. Understanding this distinction is critical for those studying real estate, as it affects how property rights are transferred and inherited.

In contrast, a reversionary interest might be the future interest that returns to the original grantor when the life estate ends, which is different from a remainder interest. Legal life estates refer to specific types of life estates that are established by law rather than by a grantor’s will or trust. Subsurface rights pertain to rights regarding minerals or other resources beneath the land's surface, and do not directly relate to life estates or their subsequent interests.