New York Real Estate Salesperson ExaminationProperty OwnershipHard
A buyer receives a deed that contains the phrase 'to John Doe, for as long as the property is used for residential purposes.' If John Doe converts the property to commercial use, the property will revert to the original grantor. What type of estate in land has John Doe received?
- AFee Simple Determinable
- BFee Simple Absolute
- CFee Simple Subject to Condition Subsequent
- DLife Estate
Show answer & explanationAnswer & explanation
Correct answer: A. Fee Simple Determinable
A fee simple determinable is an estate that automatically terminates and reverts to the grantor upon the occurrence of a specified event or condition ('for as long as', 'while', 'until'). The language 'for as long as' is a key indicator.
Why the other options are wrong
- B. Fee Simple Absolute is the highest form of ownership with no conditions or limitations.
- C. Fee Simple Subject to Condition Subsequent requires the grantor to take legal action to reclaim the property upon breach of condition, rather than an automatic reversion.
- D. A Life Estate is ownership for the duration of a person's life, not tied to a specific use condition.
Fee Simple Determinable
A fee simple estate that automatically terminates and reverts to the grantor upon the occurrence of a stated event or condition.
- Uses phrases like 'for as long as,' 'while,' 'until,' 'during.'
- Automatic reversion to the grantor or his heirs.
- A type of defeasible fee estate.
Memory trick: Determinable is automatic; Condition Subsequent means you're sued.