Bar Exam — MBE (Multistate Bar Exam)Real PropertyHard
A landowner conveyed a parcel of land 'to the City of Metropolis, so long as the land is used for a public park; otherwise, to my heirs.' The city accepted the conveyance and operated a public park on the land for 50 years. Recently, due to budget cuts, the city decided to sell the land to a private developer for commercial use. The landowner's sole heir, who is still alive, learned of the city's plan. What interest does the heir possess, and what action can the heir take?
- AThe heir has no interest, as the condition is an unreasonable restraint on alienation.
- BThe heir has a contingent remainder, and must wait for the city to actually sell the land.
- CThe heir has a possibility of reverter, and automatically regains title upon the city's decision.
- DThe heir has a right of entry, and must take legal action to regain possession.
Show answer & explanationAnswer & explanation
Correct answer: C. The heir has a possibility of reverter, and automatically regains title upon the city's decision.
The language 'so long as' creates a fee simple determinable, which is automatically terminated upon the occurrence of the stated condition. The grantor (and thus their heirs) retains a possibility of reverter, which vests automatically.
Why the other options are wrong
- A. Conditions tied to specific uses (like public park) are generally permissible and not considered unreasonable restraints on alienation, especially when they define the duration of the estate itself.
- B. A contingent remainder is a future interest in a third party. Here, the interest is retained by the grantor's heirs, making it a reversionary interest, not a remainder.
- D. A right of entry (or power of termination) is associated with a fee simple subject to condition subsequent (e.g., 'but if... grantor has right to re-enter'). The language here ('so long as... otherwise, to my heirs') indicates automatic termination.
Fee Simple Determinable & Possibility of Reverter
A fee simple estate that automatically terminates upon the occurrence of a stated event, with the grantor (or their heirs) retaining a possibility of reverter.
- Created by 'so long as,' 'while,' 'during,' 'until,' 'unless.'
- Title automatically reverts to grantor/heirs upon condition breach.
- Grantor's retained interest is a possibility of reverter.
- Distinguish from Fee Simple Subject to Condition Subsequent (which requires action to re-enter).
Memory trick: Determinable Dies Directly, Condition Subsequent Calls for Claim.