Florida Real Estate Sales Associate Examination Content OutlineReal Estate Contracts and AgencyHard
A property owner wants to transfer their property to a relative but wishes to retain a future interest in the property should certain conditions not be met. Which type of deed is most suitable for this purpose?
- ABargain and sale deed
- BQuitclaim deed
- CSpecial warranty deed
- DDeed with a condition subsequent
Show answer & explanationAnswer & explanation
Correct answer: D. Deed with a condition subsequent
A deed with a condition subsequent allows the grantor to convey title but reserves the right to re-take possession if a specified condition is violated, thus retaining a future interest.
Why the other options are wrong
- A. A bargain and sale deed implies the grantor holds title but offers no warranties against encumbrances, and doesn't retain condition-based future interests.
- B. A quitclaim deed transfers whatever interest the grantor has without any warranties, and doesn't inherently retain future interests based on conditions.
- C. A special warranty deed warrants title only against defects arising during the grantor's ownership, not for retaining future interests.
Deed with Condition Subsequent
A deed that conveys title to a grantee, but specifies a condition that if violated, allows the grantor (or their heirs) the right to re-enter and reclaim the property.
- Grantor retains a 'right of re-entry'
- Condition must be clearly stated
- Violation of condition does not automatically revert title; grantor must act
Memory trick: Warranty is full, Special is partial, Quitclaim just quits, Condition Creates Control.