Which legal concept defines property rights that remain with the owner even when the property is transferred to another?

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Study for the Arizona Real Estate Exam. Boost your knowledge with flashcards and multiple choice questions with explanations. Be exam-ready with our comprehensive review!

The correct answer is that the legal concept which defines property rights that remain with the owner even when the property is transferred to another is known as remainder interest.

Remainder interest occurs when a property owner transfers ownership of their property but retains certain rights to the property that will become effective at a later point in time or upon the occurrence of specific events. For instance, a property owner may create a will in which they leave their property to someone else but retain the right to use the property for the rest of their life. Upon the owner's passing, the property would then transfer to the remainder beneficiary.

An easement generally involves the right to use someone else's property for a specific purpose, like accessing a landlocked parcel, and does not provide the original owner with rights once the property is transferred. A leasehold is a temporary form of property interest where a tenant holds rights to occupy and use a property owned by someone else for a defined period, ending when the lease expires. A life estate gives an individual the right to use and enjoy a property for the duration of their life, but upon their death, the property automatically reverts to the original owner or passes to another designated party, rather than allowing for retained rights by the original owner after transfer.

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