Property Ownership

A property in Eugene is subject to a 'condition subsequent' in the deed. If the condition is violated, the grantor has the right to:

AAutomatically recover title without any court action
BSue for monetary damages only
CRe-enter and reclaim the property — but must exercise the right of re-entry or bring legal action✓ Correct
DImpose a lien equal to the property's value

Explanation

A fee simple subject to a condition subsequent creates a right of re-entry (also called power of termination) in the grantor. Unlike a fee simple determinable (which automatically reverts when the condition is broken), a fee simple on condition subsequent requires the grantor to affirmatively exercise the right of re-entry through legal action.

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