Property OwnershipIntermediateAlabama Exam

The term 'fee simple subject to a condition subsequent' means the estate:

AAutomatically reverts if a condition is violated, a pattern seen in many similar transactions

BMay be terminated by the grantor exercising the right of re-entry if a condition is violatedCorrect

CCannot be sold or transferred

DIs limited to the life of the grantee

Why May be terminated by the grantor exercising the right of re-entry if a condition is violated Is Correct

Answer B: May be terminated by the grantor exercising the right of re-entry if a condition is violated

A fee simple subject to a condition subsequent does NOT automatically revert — the grantor must take legal action (exercise the right of re-entry) to reclaim the property if the condition 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

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.

People Also Study

Key Terms to Know

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

Easement

A non-possessory right to use another person's land for a specific purpose.

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