springing interest


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springing interest

n. a future right to title to real property created by a deed or will. Example: "I give title to my daughter Mable for her lifetime, and, on her death, title to my grandson Rex. Rex has a springing interest in the property. (See: interest, title, future interest)

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Another technique, more popular in distressed situations, is the use of a "hope letter," essentially a springing interest in future profits if the property meets certain negotiated performance milestones.