Question

A property owner conveyed a one-acre parcel of land to a preschool. The deed stated that the property was to be used only as a playground; the property owner reserved a right of reentry. What kind of estate has been granted?

A. Leasehold
B. Fee simple subject to a condition subsequent
C. Fee simple absolute
D. Curtesy

Answer 1

A fee simple subject to a condition subsequent has been granted, which allows the preschool to use the land indefinitely as a playground, with the original owner retaining the right of reentry if the condition is breached.

Step-by-step explanation:

The property owner has granted a fee simple subject to a condition subsequent. This is a type of estate that grants the holder full ownership of a property under the condition that it is used for a specific purpose, in this case, as a playground for a preschool. The key feature of this estate is the right of reentry, which the original owner retains, allowing them to retake possession of the property if the condition is violated. Unlike a leasehold, there is no set term for the estate and the preschool could potentially use the land indefinitely, provided the condition is met. It is distinct from a fee simple absolute, which is an unrestricted ownership right, and from a courtesy, which is a legal estate given to a surviving husband.