Property Ownership

Under New York law, a 'fee simple subject to a condition subsequent' means:

AThe grantee's ownership automatically ends if the condition fails
BThe grantor retains a right of re-entry — if the condition is violated, the grantor may choose to re-enter and reclaim the property (but it doesn't automatically revert)✓ Correct
CThe property is owned in fee simple with no conditions
DThe grantee must pay a premium fee after 10 years

Explanation

A fee simple subject to a condition subsequent grants ownership that continues after a specified condition occurs, but the grantor retains a 'right of re-entry' (or power of termination). Unlike a fee simple determinable (which automatically reverts when the condition fails), the fee simple on condition subsequent requires the grantor to take affirmative action to reclaim the property after the condition is violated.

People Also Study

Practice More New York Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New York Quiz →