Which statement best describes a fee simple defeasable estate?

• A. An estate that ends after a fixed number of years.
• B. An estate that may be subject to conditions or limitations attached to ownership.
• C. An estate with possibility of reversion automatically to grantor.
• D. An estate with no limitations on ownership.

Answer: (B)

A fee simple defeasible estate is ownership that can be defeated or terminated if a specified condition occurs or a stated limitation is violated. This means the ownership isn’t guaranteed forever; it can end or revert when the condition happens.

Two common forms illustrate this idea. One ends automatically when the condition occurs, using language like “so long as” or “until,” so the property returns to the grantor or a designated person. The other form isn’t automatically terminated, but the grantor (or a specified party) has a future interest to reclaim the property if the condition is breached.

The statement describing ownership that may be subject to conditions or limitations attached to ownership best captures that defeasibility. The other options describe different types of estates: a term-based arrangement ends after a fixed period, an automatic reversion is a more specific feature of certain forms, and ownership with no limitations describes a fee simple absolute.