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Property OwnershipEstates_and_interestsHARD

A deed states, 'to Sunrise Church, but if the property is ever used for commercial retail, Grantor may re-enter and retake the property.' Which statement about the church's estate is NOT correct?

Correct Answer

C) Title automatically returns to the grantor the moment retail use begins

Option D is the incorrect statement. In a fee simple subject to condition subsequent, the estate does not end automatically upon breach; instead, the grantor must choose to exercise the retained right of entry or power of termination.

Answer Options
A
The church holds a fee simple subject to condition subsequent
B
The grantor retained a right of entry, also called a power of termination
C
Title automatically returns to the grantor the moment retail use begins
D
Commercial retail use can trigger the grantor's ability to retake the property

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Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

reverse_questioncondition_subsequentright_of_entrydefeasible_feepower_of_termination

Related Concepts

Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.

Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.

A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.

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