A Wyoming rancher holds a fee simple absolute interest in 640 acres in Carbon County. He wants to leave the property to his daughter but only as long as she uses it for agricultural purposes. If she stops farming, he wants the property to automatically revert to his estate. Which type of ownership interest should his attorney create in the deed?
Correct Answer
B) Fee simple determinable with a possibility of reverter
A fee simple determinable is a fee simple estate that automatically terminates and reverts to the grantor (or grantor's heirs) upon the occurrence of a stated event or condition. The language 'so long as,' 'while,' or 'during' is typically used. The future interest retained by the grantor is called a possibility of reverter. Because the rancher wants the property to AUTOMATICALLY revert if the agricultural use stops, fee simple determinable with a possibility of reverter is the correct instrument.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
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