A homeowner in North Vancouver has listed his property for $1.6 million.

However, the man does not plan to leave when his house sells.

The owner wants to continue living at his 1281 McBride Street home until he dies.

Or until he moves to a seniors’ facility for good.

How is this possible?

The Macdonald Realty listing explains that this can be done through a “life estate” registered on the property’s title.

One may ask what a life estate means.

Vancouver lawyer Trevor Todd specializes in estate litigation.

Todd’s website has a page explaining the concept.

The site notes that life estates, also known as life interests, are a “well-established part of estate planning”.

“The owner of a life estate (‘the life tenant’) has the right to occupy, use and deal with real and/or personal property for his or her lifetime,” the page explains.

It continues, “When the life tenant dies, the remaining interest in the property then passes to the next person entitled, historically named the ‘remainderman’.”

After the life tenant dies, the remainderman “enjoys full ownership of the property”.

“During his or her lifetime, a life tenant enjoys the right to possession and management of the property,” the site also states.

As indicated on Todd’s website, a life tenant “must treat the property in such a manner that it is not damaged and does not deteriorate, beyond reasonable wear and tear”.

Life estates may be created through a number of means.

One is through a will.  

Another is with a land transfer.

“Historically men of means, by their wills, left their wives life estates in their property,” the site also notes.

The listing for the North Vancouver home indicates that the seller is 73 years old.

The seller plans to remain a resident and pay rent of $2,000 per month.

He will also be “responsible for all repair & maintenance of the home, insurance costs and the utilities portion (2021 = $1,827.40) of property taxes”.

“Life estate will be released for owner for possession upon seller's death or upon moving out of the home permanently (to a care facility for example),” the Macdonald Realty listing states.

Financing may be challenging.

“Note, lenders will not provide a mortgage with a Life Estate on title. Seller may finance over 10 years only for qualified buyer,” the listing notes.

The text points out that 1281 McBride Street is listed below market value.

The property has a 2022 assessment of $1,438,900.

The four-bedroom and two-bath rancher sits on a huge lot with a frontage of 68 feet and depth of 108 feet.

Vancouver realtor David Hutchinson mentioned the North Vancouver real estate listing to the Straight.

The Sutton Group-West Coast Realty agent has been working with a couple who are looking to buy their first home, and they asked him if this life estate offering is a good deal.

“Perhaps, this is what the market has come to: buy now and move in later, possibly much later,” Hutchinson said.

His clients didn’t buy the property.

“I think they could consider this property if the seller allowed them to live in the property also,” Hutchinson said in jest.

“Or at least have weekend sleepovers,” the realtor added.

The Straight sought listing agent Julia Stauffer of Macdonald Realty.

Stauffer said that her client has received legal advice about the life estate option, which she said “gives him the most security in being able to stay”.

“It’s him trying to be creative in something that he’s looking to do,” the realtor noted.

Stauffer related that her client has owned 1281 McBride Street for about 20 years.

The owner is generally healthy.

“He’s not infirm in any way,” Stauffer said.

The Macdonald Realty agent noted that the listing presents a “very longterm option for an investor”.

“It comes down to someone either having the capital and be willing to invest or to accept my vendor’s financing, which is quite steep,” she said.

Stauffer said that seller is offering reasonable interest.

However, since it's going to be a 10-year term, the financing makes for an “expensive proposition”.

“He’s doing what he wants to do and I’m supporting him,” Stauffer said about her seller.

Here’s a look inside 1281 McBride Street.