Question

Failure to reserve a reversionary estate or name a remainderman results in a:

A) Fee simple absolute.
B) Fee simple determinable.
C) Life estate.
D) Fee simple subject to condition subsequent.

Answer 1

A fee simple absolute is created when a property owner transfers ownership without reserving a reversionary interest or naming a remainderman; the grantee receives unrestricted ownership that is inheritable.

Step-by-step explanation:

When a property owner transfers ownership but does not specify a reversionary interest or name a remainderman, a fee simple absolute estate is typically created. This means the grantee receives full ownership with no conditions or limitations on their interest in the property. The property interest is theirs to use, enjoy, and dispose of as they wish, and it can be inherited by their heirs.

In contrast, a fee simple determinable is a conditional estate that will automatically terminate and revert to the grantor upon the occurrence of a specified condition. A life estate grants an individual the right to use and enjoy the property for their lifetime, after which the property will pass to the remainderman. Lastly, a fee simple subject to condition subsequent is an estate that does not automatically terminate but allows the grantor to reclaim the property if a condition is breached.