Property Ownership

What is a 'fee simple defeasible' estate in Illinois?

AA fee simple ownership that cannot be transferred without court approval
BA fee simple ownership subject to a condition; if the condition is violated, the estate may be forfeited or terminated✓ Correct
CAn ownership interest limited to a specified dollar amount
DA fee simple that automatically terminates after 99 years

Explanation

A fee simple defeasible is a fee simple interest that may be defeated (terminated) upon the occurrence or non-occurrence of a specified condition. There are two types: fee simple determinable (automatically terminates if condition is violated) and fee simple subject to condition subsequent (original owner has the right to re-enter if condition is violated). These are used to place conditions on property transfers (e.g., 'so long as used for a school').

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