What is a remainder in the context of property ownership?

In the context of property ownership, a remainder refers to the interest that passes to a third party upon the expiration of a prior estate. This legal concept typically arises in the context of a life estate, where one party, known as the life tenant, has the right to use and benefit from the property during their lifetime. Upon the life tenant's death, the property does not revert back to the original grantor but instead goes to a designated remainderman, who holds the remainder interest.

This arrangement ensures a smooth transition of property rights according to the terms set forth in the original grant. For instance, if property is granted to a person for their lifetime with a remainder interest to another individual, once the lifetime interest ends, the property automatically transfers to the remainderman without further action needed.

Recognizing this concept is crucial in understanding how property interests can be structured and transferred, which plays a significant role in estate planning and real estate law. Other options do not accurately represent the definition of a remainder, making this choice the most accurate and relevant in the context of property ownership.