Massachusetts Real Estate License Practice Test

In a Fee Simple Determinable estate, what happens when a specified event occurs?

1. The estate can be sold immediately

2. The estate remains unaffected

3. The estate returns automatically to the grantor

4. The estate is converted to fee simple absolute

The correct answer is: The estate returns automatically to the grantor

In a Fee Simple Determinable estate, the defining characteristic is that the estate is granted with a condition or a specific event attached to it. If that event occurs—such as a property being used for a purpose not intended by the grantor—the property automatically reverts back to the grantor. This automatic return is what distinguishes Fee Simple Determinable from other types of estates. The key component of this estate type is that the grantor holds a possibility of reverter, meaning they have a vested interest in reclaiming the property if the terms of the original conveyance are not met. As a result, this mechanism ensures that the property does not remain in the hands of a new owner if the specified condition is breached, thus providing the grantor with a safety net regarding how the property is used or occupied. This automatic return to the grantor upon the occurrence of the specified event upholds the intentions outlined in the original conveyance, making it a significant aspect of property law concerning conditional estates. Other possible answers do not accurately convey the legal mechanism involved in a Fee Simple Determinable, as they suggest scenarios that do not align with the automatic nature of reversion in this type of estate.