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Multiple Choice

Which is true of a fee simple subject to condition subsequent?

The key idea is that in a fee simple subject to a condition subsequent the grantor keeps a right of entry to reclaim the property if the condition is violated. The grantee holds the full ownership (a fee simple), but the grantor has a future interest—the power of termination—that can be exercised to retake the land if the specified condition occurs. Because of this, the estate does not automatically end the moment the condition is breached; the grantor must actively exercise the right of entry to reclaim it. The future interest rests with the grantor (and, by inheritance, the grantor’s heirs), not with the grantee or the grantee’s heirs. This arrangement does not require a court order to transfer; the grantor can reclaim by exercising the right of entry (within applicable legal procedures). That’s why the statement describing the grantor’s right of entry to reclaim the property upon violation best captures the concept.

The key idea is that in a fee simple subject to a condition subsequent the grantor keeps a right of entry to reclaim the property if the condition is violated. The grantee holds the full ownership (a fee simple), but the grantor has a future interest—the power of termination—that can be exercised to retake the land if the specified condition occurs. Because of this, the estate does not automatically end the moment the condition is breached; the grantor must actively exercise the right of entry to reclaim it. The future interest rests with the grantor (and, by inheritance, the grantor’s heirs), not with the grantee or the grantee’s heirs. This arrangement does not require a court order to transfer; the grantor can reclaim by exercising the right of entry (within applicable legal procedures). That’s why the statement describing the grantor’s right of entry to reclaim the property upon violation best captures the concept.