A property owner, Olivia, executed a deed transferring her property "to Marcus for life, then to Nora and her heirs." After the conveyance, Marcus lived on the property for several years but neglected its upkeep, causing significant damage to the structure. Nora files suit to address the situation. Which of the following best describes the type of estate Marcus and Nora hold, and their rights in this situation?
Marcus holds a fee simple interest while Nora holds no interest until Marcus dies.
Marcus holds a life estate, and Nora holds a vested remainder. Marcus is responsible for preventing waste during his lifetime.
Marcus holds a life estate, while Nora holds an executory interest, so no rights arise for Nora until Marcus commits waste.
Marcus holds a defeasible fee, and Nora holds a contingent interest until Marcus’s death.
Marcus holds a life estate, which grants him exclusive possession and use of the property for the duration of his life. However, his rights are subject to the obligation not to commit waste—meaning he cannot unreasonably damage the property to the detriment of the future interest holder. Nora holds a vested remainder, meaning she has a future interest that is guaranteed to vest in her or her heirs upon Marcus’s death. The damage caused by Marcus is considered permissive waste, which Nora, as the remainderman, has the right to address in court to prevent further harm or to seek damages. This distinguishes Nora’s rights as a vested remainderman from situations involving contingent interests or executory interests.
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What is a life estate and how does it differ from other types of estates?
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What is a vested remainder and how does it impact future property interests?