Legal Question in Real Estate Law in California

Re: life-tenancy law in california

You are buying into a problem, so make sure your purchase price is at a very deep discount from fair market value. A life tenant has a right to stay in possession of the premises for the rest of his or her life, which could be a very long time, and may have a right to possess the entire building, depending on the terms, so is entitled to collect all the rents. Theoretically, the life tenant is responsible for maintenance, insurance and taxes, but enforcing this against the life tenant can be a problem. Get a copy of the deed or conveyance providing for the life tenancy so you can see for sure how big the problem will be. Are you, by any chance, stepping into the middle of a family dispute? It could be an opportunity to acquire SF real estate cheap, but you will have to wait to enjoy the property and collect rents until the life tenant dies or sells his or her interest.

Re: life-tenancy law in california

A life tenancy is a form of ownership. A person in life tenancy effectively owns the property for their lifetime (or occasionally, for the lifetime of another), after which lifetime ownership passes to someone else. Don't confuse this kind of 'tenant' with the rent-paying kind!

Life tenancies often result from divorce settlements; for example, the ex-wife receives a life tenancy in the (former) family home, but when she dies, the house passes automatically to the ex-husband or his heirs. The person who gets ownership and the right of possession upon death of the life tenant is called the remainderman.

A life tenant can rent the property, or even sell his interest in it......but when such a landlord or seller then dies, the buyer or renter loses his right of possession to the remainderman. Therefore, the most a life tenant can rent out or sell is possession for his (the seller's) own lifetime, because that's all he has.

If you buy a duplex from someone who has a current right of possession in unit A and a future right of possession (as remainderman) in unit B, the most you can get is what the seller had, and you will become the remainderman with respect to unit B. You will not have any right of possession nor to receive rents from the life tenant, but the life tenant owes you a duty to maintain unit B to protect your (future) interest in it.

I hope this simplified explanation helps. You should understand fully what rights you are acquiring and what rights you will have to wait for before investing. Professional assistance is recommended. See an attorney with a real estate practice in the county where the property is located.