Property Ownership

A North Dakota property owner conveys their home to their daughter using a deed but states: 'To daughter Sarah, but if she ever uses the property for a bar, title shall pass to my son John.' This is a:

AFee simple absolute
BFee simple subject to condition subsequent (defeasible fee)✓ Correct
CLife estate
DTenancy in common

Explanation

A fee simple subject to a condition subsequent (or fee simple on condition) can be defeated if the grantee violates a specified condition. Unlike fee simple determinable, it does not automatically revert; the grantor must take affirmative action.

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