What is the main distinction between a fee simple determinable estate and a fee simple condition subsequent estate?

Prepare for the National Ownership Exam with study materials including flashcards and multiple choice questions featuring detailed hints and explanations. Get ready to ace your exam!

The primary distinction between a fee simple determinable estate and a fee simple condition subsequent estate lies in the nature of reversion of ownership. In a fee simple determinable estate, the ownership automatically reverts back to the grantor when a specified event occurs or condition is not met. This automatic reversion is a key characteristic of a determinable estate, meaning that if the property's use violates the stipulation set forth by the grantor—such as using the property for a non-residential purpose—the ownership will revert without any further action necessary.

On the other hand, a fee simple condition subsequent estate does not revert automatically. Instead, the grantor must take specific steps to reclaim the property after a breach of the condition, which may involve seeking legal action. This key difference emphasizes the immediacy of reversion in a determinable estate compared to the conditional and more complex process required for a condition subsequent.

The remaining options relate to characteristics or requirements that do not capture the fundamental difference in reversion behavior between the two estates. Understanding this distinction is essential in real estate law, as it impacts property rights and obligations for both grantors and grantees.

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