Which term describes a fee simple estate in which the new owner is prevented from performing a specific action?

• A. Fee simple defeasable estate
• B. Qualified/determinable fee estate
• C. Estate fee simple on condition subsequent
• D. Condition precedent

Answer: (D)

Defeasible fee describes a fee simple estate that can be defeated or limited by a specified condition. When the grantor attaches a restriction—what the owner may or may not do—the ownership remains a fee simple, but only so long as the condition isn’t violated. If the prohibited action occurs, the estate can terminate or revert to the grantor, depending on the exact type of defeasible arrangement. That’s why this term best fits a scenario where the new owner is prevented from performing a particular action after acquisition.

The other concepts aren’t the best fit here. A condition precedent is something that must happen before the transfer occurs, not a restriction on actions after ownership. The determinable or qualified fee and the fee simple on condition subsequent are specific forms of defeasible estates, but the general idea being tested is the defeasible nature of the estate itself, not the particular subtype.