Property Ownership

In NJ, a 'fee simple subject to an executory limitation' (also called fee simple on an executory interest) means:

AThe property is owned by an executor of an estate
BThe estate automatically shifts to a third party (not the grantor) if a specified condition occurs✓ Correct
CThe owner holds the fee until they execute a sale
DA life estate with a reversion

Explanation

A fee simple subject to an executory limitation is a defeasible fee that, upon a specified condition, shifts automatically to a third party (the holder of an executory interest)—not back to the original grantor as in a fee simple determinable.

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