Question

An owner takes title to a property on the condition that he never use it to manufacture alcoholic beverages on the property. What term best describes his ownership interest?

Answer 1

The term that best describes the ownership interest of an owner who takes title to a property on the condition of not manufacturing alcoholic beverages there is a 'fee simple defeasible,' and more specifically, a 'fee simple subject to a condition subsequent.'

Step-by-step explanation:

The ownership interest of the owner who takes title to a property on the condition that he never uses it to manufacture alcoholic beverages on the property is best described as a fee simple defeasible. Specifically, this type of conditional estate in real property is often referred to as a fee simple subject to a condition subsequent. In this case, the condition is that the property must never be used to manufacture alcoholic beverages. If the owner violates this condition, the previous owner, or the previous owner's heirs or assignees, may have the right to reassert ownership of the property.