Martin grants a fee simple determinable to a local church in California, stating the property shall be used 'so long as it is used for religious purposes.' The church has used the property for worship for 25 years. The church now wants to sell the property to a commercial developer. What happens under California law?
Correct Answer
B) Title automatically reverts to Martin or his heirs when the religious use ceases
A fee simple determinable automatically terminates when the stated condition is violated. The language 'so long as' creates an automatic reverter. When the church ceases using the property for religious purposes (by selling to a commercial developer for non-religious use), title automatically reverts to Martin or his heirs through the possibility of reverter.
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Before marriage, Karen purchases a home in California using her own funds and takes title in her name alone. During the marriage, she makes all mortgage payments exclusively from a pre-marriage savings account that has never been commingled with marital funds. Her spouse contributes nothing financially to the property. At divorce, which outcome would a California court MOST likely reach regarding the home?
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Peter and Nancy, a married couple in California, want to ensure that upon the death of either spouse, the surviving spouse receives the entire property AND a full stepped-up tax basis on both halves. Which form of title should their real estate agent recommend?
