An owner grants land 'to Maria for life, then to her children, but if the land is ever used for commercial purposes, the grantor may re-enter and take it back.' What interest does Maria hold?
Correct Answer
B) A life estate subject to a condition subsequent, with a right of re-entry
Words such as 'but if', followed by an express right for the grantor to re-enter, create a condition subsequent: Maria's life estate continues until the grantor acts on a breach by re-entering. A determinable interest uses words of duration such as 'while' or 'so long as' and ends automatically, leaving a possibility of reverter. Ontario's Perpetuities Act recognizes both a right of re-entry for a condition subsequent and a possibility of reverter on a determinable interest.
Why This Is the Correct Answer
This answer is correct because the grant is framed as a condition ('but if') and gives the grantor an express right to re-enter. That is the hallmark of an estate subject to a condition subsequent: Maria's life estate continues until the grantor acts on a breach.
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A developer is creating an Ontario condominium with both residential and commercial units and wants the commercial units to pay a larger share of the common expenses and to carry more votes. Under the Condominium Act, 1998, which part of this plan is permitted?
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