Property OwnershipIntermediateArizona Exam

A fee simple absolute estate is best described as:

AOwnership of the property for the duration of the owner's natural life, after which the property reverts to the original grantor or passes to a named remainderman

BThe most complete form of real property ownership with no conditions or limitationsCorrect

COwnership of the property subject to a condition subsequent that will cause the property to revert if the owner fails to comply with a specified condition

DOwnership of the property shared equally with at least one other party in a joint tenancy with right of survivorship under a jointly executed deed

Why The most complete form of real property ownership with no conditions or limitations Is Correct

Answer B: The most complete form of real property ownership with no conditions or limitations

Fee simple absolute is the highest form of real property ownership. The owner has complete rights to use, enjoy, and dispose of the property without conditions or limitations (subject to government powers).

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

Deed

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

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.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

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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).

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

Right of First Refusal

A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.

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