Texas Real Estate State Practice Exam

A life estate is a type of property ownership that grants an individual the right to use and occupy a property during their lifetime. This legal arrangement is defined such that the ownership of the property is transferred to another party after the death of the life tenant, which is the individual holding the life estate. Once the life tenant passes away, their rights to the property automatically terminate. At that point, the property will typically revert to the original grantor or pass to a designated remainderman, who has the right to take possession of the property. This aspect of life estates is foundational to understanding property rights in real estate law, particularly in Texas. The other options do not accurately describe when a life estate ends. Market value fluctuations do not affect the status of the life estate, nor does a specified duration apply, as a life estate is specifically tied to the lifetime of the individual. Furthermore, selling the life estate does not terminate it; the new owner would still only hold the property until the original life tenant passes away. Thus, the correct answer centers on the inherent nature of life estates relating to the life of the tenant.