What type of interest allows property to revert back to the original owner after a life estate?

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Study for the Real Estate Course 3 Exam. Enhance your skills with comprehensive flashcards and multiple-choice questions. Each question comes with hints and explanations. Gear up for your success!

Reversionary interest refers to the situation in which property ownership is expected to revert back to the original owner after the end of a life estate. In a life estate, an individual (the life tenant) has the right to use and occupy the property for their lifetime. Upon their death, the property does not stay with the life tenant's heirs but instead goes back to the original owner or their designated heirs, assuming the original owner did not convey the property in a way that would create a different arrangement.

This concept hinges on the idea of ownership and transfer of property rights. The original owner's reversionary interest ensures that they or their estate regain control of the property when the life interest concludes, thus allowing for a return to the original ownership structure.

In contrast, life interest refers to the rights held during the life estate, while future interest encompasses various rights that do not become possessory until a future point in time. Conditional interest involves stipulations that must be met for ownership to continue, which is not relevant in this context of a life estate. Hence, choosing reversionary interest captures the essence of the property returning after the life tenant's death, making it the correct answer.

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