NCEES Principles and Practice of Surveying Practice Exam

Which type of estate is dependent on a future event for its continuation?

1. Life Estate

2. Fee Simple Absolute

3. Defeasible fee simple estate

4. Joint Tenancy

The correct answer is: Defeasible fee simple estate

A defeasible fee simple estate is an estate that can be terminated upon the occurrence of a specified future event or condition. This type of estate allows the owner full rights to the property, but with the stipulation that their ownership will cease if a certain event occurs. For example, a property might be conveyed "to A as long as the property is used for educational purposes." If A stops using the property for that purpose, the estate would terminate automatically, and the property would revert to the grantor or a designated party. In contrast, a life estate is contingent upon the life of a specific person but does not involve a future event beyond that individual's lifespan. Fee simple absolute represents the highest form of property ownership, without any conditions or limitations, meaning the owner retains the property indefinitely without concern for future events. Joint tenancy is a form of ownership involving multiple individuals, where ownership does not depend on any future event but rather exists concurrently with rights of survivorship. Thus, the unique characteristic of a defeasible fee simple estate lies in its dependence on a specific condition or event for its continuation.