Can I list a seller’s life estate for sale?

QUESTION: I was recently approached by a potential client who wants to sell their home. However, I was shocked to find out that their deed is for a life estate. Can I take this listing?

ANSWER: Yes, there is nothing in the License Law or the REALTORS® Code of Ethics that would prohibit you from taking this listing. However, there are a few practical considerations you should keep in mind before deciding to move forward.

First, this seller’s ownership interest is contingent on their life, which means that when they pass away, the ownership interest will pass to the remainder beneficiaries (the grantees named in the life estate deed). Since this seller can’t sell anything more than their ownership interest, whoever buys the property will only be able to own it for as long as the seller is alive. Therefore, the limited nature of the seller’s interest is absolutely a material fact that you will need to disclose to all potential buyers. Disclosure can be done in the public remarks section of the MLS listing and via email or text communications with buyers or their agents prior to an offer being made.

Second, the standard NC REALTORS® forms will not work for this type of transaction. Specifically, Form 2-T (Offer to Purchase and Contract) requires the seller to deliver a general warranty deed conveying “fee simple marketable and insurable title” to the buyer. That is not possible to do if the seller only has a life estate. So, the seller needs to hire an attorney to develop custom contracts and addenda tailored to the facts of this particular transaction.

Do not be surprised if the listing sits on the market for a long time. Generally speaking, most buyers will shy away from a life estate ownership interest because of the uncertainty that is inherently tied to it. In other words, most people who are looking to purchase a home want the certainty and clarity that a fee simple ownership interest provides. Unlike a life estate, which could be limited to a matter of days, months, or years, a fee simple interest gives the grantee the unrestricted right to sell, lease, or transfer property to their heirs for an unlimited period of time.

Given the uncertainty of being able to sell a life estate like this, you might instead consider reaching out to the parties who own the remainder interests once the life estate ends. If they are also willing to sell, then you can list the property like an ordinary listing and use our standard forms. Just be sure to have the sellers hire a closing attorney to assist them so that you can make sure they can convey fee simple title at closing.

Release Date: 3/19/2026

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