A fee simple estate subject to a condition that title reverts if the land ceases to be used as a park is:
Correct Answer
B) A defeasible fee, whose duration depends on the condition
The stated condition makes the fee defeasible rather than unconditional. The actual grant and law determine whether termination is automatic or requires action and what future interest is retained. A condition does not automatically measure market loss or establish one precise subtype.
Why This Is the Correct Answer
Option B is correct because a qualified, or defeasible, estate is less than fee simple absolute since the owner's interest can be defeated if a stated event or condition occurs. Here, if the land stops being used as a park, the fee interest reverts to someone else. The actual grant and applicable law determine how termination works and which future interest is retained.
Why the Other Options Are Wrong
Option A: An absolute fee simple carrying no limitation whatsoever on its use
Option A is wrong because it calls the estate an absolute fee simple with no limitation whatsoever on its use. The park-use condition is exactly such a limitation, and its breach can end the estate.
Option C: A leasehold interest held by the grantee
Option C is wrong because it calls the interest a leasehold held by the grantee. The grantee received a fee estate through a grant, not a right of occupancy under a lease.
Option D: An easement in gross benefiting the grantor
Option D is wrong because it describes an easement in gross benefiting the grantor. An easement is a right to use another's land, while here the grantee holds the fee itself subject to a condition.
Defeasible means can be defeated
If a stated condition can defeat the owner's title, the fee is defeasible.
How to use: Use this when a grant includes language like so long as, provided that, or on condition that.
Exam Tip
Look for a condition tied to the duration of ownership; that marks a defeasible fee.
Common Mistakes to Avoid
- -Treating a conditional fee as fee simple absolute
- -Confusing a defeasible fee with an easement
- -Assuming the condition sets a specific dollar loss without market analysis
Concept Deep Dive
Analysis
This question tests recognition of a defeasible fee. A fee simple that can end if a stated condition occurs, such as the land ceasing to be used as a park, is qualified rather than absolute. The key is that the estate's duration depends on the condition.
Background Knowledge
Defeasible fees include estates that end, or can be ended, when a stated event or condition occurs, with the property passing to the grantor or another party. They are less complete than fee simple absolute because their duration is uncertain. The effect of such a condition on market value must be analyzed with market evidence.
Real-World Application
An appraiser is asked to value land donated to a town with a deed condition that it remain a public park. The appraiser identifies the interest as a defeasible fee and considers how the use restriction and potential reversion affect value.
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