Property OwnershipIntermediateAlabama Exam

A fee simple determinable estate automatically reverts to the grantor if:

AThe grantee fails to pay property taxes, under standard practice
BA specific stated condition or event occurs or does not occurCorrect
CThe grantee sells the property
DThe grantee dies without a will

Why A specific stated condition or event occurs or does not occur Is Correct

Answer B: A specific stated condition or event occurs or does not occur

A fee simple determinable estate automatically terminates and reverts to the grantor (called a possibility of reverter) if the stated condition or limitation is violated.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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