Although the life tenant can sell the life estate, the buyer would have ownership rights only as long as the original life tenant lived. A remainder interest may also be sold. It gives a person, called a life tenant, the right to live at or use property during his lifetime — but he has no right to sell the property.
Can the remainderman of a life estate sell the property?
Life Estate FAQs A life tenant cannot sell the property or take out a mortgage loan against it without the agreement of the remainderman. The reverse is also true: The remainderman cannot sell or mortgage the property during the lifetime of the life tenant.
Can a remainderman sell the property before the life tenant dies?
If the life tenant and the remainderman both agree and sign transfer documents, the property can be sold before the life tenant dies. In this situation, the remainderman has a right to a larger portion of the proceeds than the life tenant does, with the exact portion determined by the age and life expectancy of the life tenant.
Can a holder force a life tenant to sell a property?
The question becomes, can the holder compel the sale of the property and cash in on the value of the life estate over despite the objections of the remaindermen, or can the remaindermen simply wait for the death of the life tenant and collect the full value of their interest in the home upon the holder’s death?
Can a person sell their share of a life estate?
While a life tenant cannot sell the property, a remainderman can sell their share. This means they can only sell their ownership rights, which within the terms of the life estate defines that the new buyer would only get full possession after the life tenant’s death and takes over the role of remainderman.
Who is the current owner of a life estate?
The other owner — the remainderman — has a current ownership interest but cannot take possession until the death of the life estate holder. The life tenant has full control of the property during his or her lifetime and has the legal responsibility to maintain the property as well as the right to use it, rent it out, and make improvements to it.
