Question

A property owner gave land to a school "so long as the land is used for only academic and recreational purposes." The ownership interest granted here is called

A. an easement by prescription.
B. an encumbrance.
C. a bundle of rights.
D. a fee simple determinable.

Answer 1

The school was granted a fee simple determinable estate, which requires that the land be used only for academic and recreational purposes, causing the property to revert to the original owner if these conditions are not met.

Step-by-step explanation:

The ownership interest granted to the school where land must be used only for academic and recreational purposes is known as fee simple determinable.

This type of interest is created when a grantor transfers property with a condition, which, if violated, can result in the automatic reversion of the property back to the grantor or the grantor's heirs. This is different from an easement, which is a non-possessory right to use another's property for a specific purpose, and not a transfer of title.

Restrictive covenants are provisions that impose restrictions on land use; however, they do not result in automatic reversion of the property upon breach.

Instead, they may be enforced through legal action. In contrast, a fee simple determinable estate provides an automatic mechanism for the property to revert to the original owner, creating a strong incentive for the property to be used as specified.