Illinois Real Estate Practice Exam

What interest is always stated on a deed indicating whoever gets it?

1. Remainder interest

2. Reversionary

3. Personal easement in gross

4. Life Estate

The correct answer is: Remainder interest

The correct answer relates to the type of interest in property that is explicitly defined in a deed. A remainder interest is a future interest that becomes possessory when a prior estate, such as a life estate, terminates. It indicates that the property will pass to a designated party upon the death of the life tenant, making the ownership clear and enforceable at that point in time. Clarity in the deed is essential for establishing who will ultimately hold the title to the property once the existing estate ends. A remainder interest is always articulated in the deed, ensuring the designated individual has a vested right to the property after certain conditions are met. The other interests mentioned imply various forms of property rights but do not directly convey the ownership aspect as a remainder interest does. For instance, a reversionary interest simply returns the property to the original owner upon the expiration of the current interest but may not identify a third party receiving it. Personal easements in gross pertain to the right to use another's land and are not ownership interests. A life estate, while it specifies ownership for the duration of a person's life, does not inherently indicate who will receive the property after that individual's death unless a remainder is explicitly stated.