Property OwnershipIntermediateCalifornia Exam

What does 'fee simple defeasible' mean?

AA fee simple estate that can be defeated or terminated if specified conditions are violatedCorrect

BA fee simple estate with no restrictions, consistent with common law property ownership principles

CAn estate held by a corporation, per standard California real property conventions

DAn estate that cannot be transferred, under standard California property ownership law

Why A fee simple estate that can be defeated or terminated if specified conditions are violated Is Correct

Answer A: A fee simple estate that can be defeated or terminated if specified conditions are violated

Fee simple defeasible is an estate in fee simple that can be defeated (terminated) if certain conditions occur. There are two types: fee simple determinable (automatically ends on the condition's occurrence) and fee simple subject to a condition subsequent (can be reclaimed if a 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.

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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).

Easement

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

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

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