Escrow & TitleIntermediateAlaska Exam

An Alaska property is transferred by deed with a retained 'right of reentry' by the grantor. This is associated with which type of estate?

AFee simple absolute
BFee simple subject to condition subsequentCorrect
CFee simple determinable, under this approach
DLife estate

Why Fee simple subject to condition subsequent Is Correct

Answer B: Fee simple subject to condition subsequent

A fee simple subject to condition subsequent includes the grantor's 'right of reentry' — the grantor's reserved right to reclaim the property if a specified condition is violated. Unlike fee simple determinable (which terminates automatically), fee simple subject to condition subsequent requires the grantor to affirmatively exercise the right of reentry to reclaim the property.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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