Property OwnershipIntermediateAlaska Exam

Which of the following correctly describes a 'fee simple subject to condition subsequent' estate in Alaska?

AAn estate that automatically terminates if a condition occurs, a pattern seen in many similar transactions
BAn estate that may be terminated by the grantor exercising a right of re-entry if a condition is violatedCorrect
CAn estate that terminates only with court approval
DAn estate lasting for a fixed number of years

Why An estate that may be terminated by the grantor exercising a right of re-entry if a condition is violated Is Correct

Answer B: An estate that may be terminated by the grantor exercising a right of re-entry if a condition is violated

A fee simple subject to condition subsequent is a fee estate that may be terminated if a specified condition is violated, but only if the grantor exercises their right of re-entry. Unlike fee simple determinable (which terminates automatically), the grantor must affirmatively act to reclaim the property.

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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