A property owner conveys land through a valid deed stating, "to Jane and her heirs, so long as the property is used for residential purposes." Jane builds a residential home on the property and lives there for ten years. She then decides to sell the property to a commercial developer who plans to build a shopping center. What kind of ownership interest did Jane originally acquire, and what will likely happen if the developer proceeds with their plan?
Jane acquired a life estate, and the property ownership will revert to the grantor upon her death.
Jane acquired a fee simple determinable, and the property will automatically revert to the original grantor once the condition is breached.
Jane acquired a fee simple absolute, and the developer can use the property for any lawful purpose without restriction.
Jane acquired a fee simple subject to a condition subsequent, and the original grantor must act to reclaim the property after the condition is breached.
The initial grant to Jane created a fee simple determinable because the language "so long as" establishes a condition that ties the continued ownership of the land to a specific use—residential purposes. If the condition is violated, the property interest automatically reverts to the original grantor or their heirs without the need for legal action. The sale of the property to a commercial developer planning non-residential use will trigger the automatic reversion. Other answers are incorrect because a fee simple subject to a condition subsequent requires the original grantor to take action to reclaim the property upon a violation, which is not the case here. A fee simple absolute involves no conditions, and the details of this conveyance clearly impose one.
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What distinguishes a fee simple determinable from a fee simple subject to a condition subsequent?
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Why does the property automatically revert in a fee simple determinable?
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What happens if a future interest like the possibility of reverter is passed to someone other than the original grantor?
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Real Property
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