Which of the following statements most accurately describes the nature of a fee simple absolute estate in real property?
It provides possession only for the duration of the owner's life, after which the property returns to the grantor or to a designated remainderman.
It creates an estate that will automatically terminate and revert to the grantor if a specified condition occurs.
It gives the owner the broadest possible interest in the land, but the property is still subject to governmental powers (such as taxation, zoning, and eminent domain) and to private encumbrances like easements or restrictive covenants.
It gives the owner title that cannot be transferred by will or inherited and will escheat to the state upon the owner's death.
A fee simple absolute conveys the widest bundle of rights recognized at common law, allowing the owner to sell, devise, or transfer the land without time or event limits. Nevertheless, the ownership remains subject to the government's powers of taxation, eminent domain, police power, and escheat, and to any private encumbrances the owner or predecessors have created, such as easements or restrictive covenants. Therefore, only the first statement correctly captures both the breadth of the estate and the fact that external public and private restrictions can still exist; the other statements describe defeasible fees or life estates and are incorrect.
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Multistate Bar Examination
Real Property
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