Property OwnershipIntermediateCalifornia Exam

A fee simple defeasible estate is BEST described as:

AA lease for a fixed period of years, consistent with common law property ownership principles

BA fee simple estate that may be lost upon the occurrence or non-occurrence of a specified eventCorrect

CAn estate that lasts for the life of the grantee only, per standard California real property conventions

DAn ownership interest shared equally among multiple parties, under standard California property ownership law

Why A fee simple estate that may be lost upon the occurrence or non-occurrence of a specified event Is Correct

Answer B: A fee simple estate that may be lost upon the occurrence or non-occurrence of a specified event

A fee simple defeasible (also called fee simple determinable or fee simple subject to condition subsequent) is a fee simple estate that can be terminated if a specified condition occurs or fails to occur. For example, a grant 'to the school district so long as used for school purposes' is a fee simple determinable.

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.

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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.

Life Estate

A freehold interest in real property that lasts only for the duration of a specified person's life.

Deed

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

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

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