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
Why this is correct: A fee simple subject to a condition subsequent is a defeasible fee; title can revert if the condition (e.g., use as a park) fails, affecting its marketability and value. Why the other choices are wrong: "An absolute fee simple carrying no limitation whatsoever on its use" contradicts the condition stated. "A leasehold interest held by the grantee" is wrong; this is a freehold, not a leasehold. "An easement in gross benefiting the grantor" is incorrect; an easement is a right of use, not an ownership estate. Exam tip: Defeasible fees have conditions; valuing them as absolute fee simple overstates value.
Why This Is the Correct Answer
Why this is correct: A fee simple subject to a condition subsequent is a defeasible fee; title can revert if the condition (e.g., use as a park) fails, affecting its marketability and value. Why the other choices are wrong: "An absolute fee simple carrying no limitation whatsoever on its use" contradicts the condition stated. "A leasehold interest held by the grantee" is wrong; this is a freehold, not a leasehold. "An easement in gross benefiting the grantor" is incorrect; an easement is a right of use, not an ownership estate. Exam tip: Defeasible fees have conditions; valuing them as absolute fee simple overstates value.
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A property is conveyed 'to Alice for life, then to Bob and his heirs.' Bob is alive and 35 years old at the time of conveyance. What type of interest does Bob hold?
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A residential property is located in a subdivision governed by covenants, conditions, and restrictions (CC&Rs) recorded in 1985. One CC&R prohibits detached accessory structures over 12 feet in height. The property currently has a 14-foot-tall detached garage built in 2012. No enforcement action has been taken. How should the appraiser reflect this violation in the appraisal report?