Freehold
Property Ownership term
The highest form of ownership, lasting indefinitely with no conditions on transfer or inheritance.
This term belongs to Property Ownership. The questions below are real items from Freehold's bank that use it - each one cites its source.
Every Freehold question shows why the right answer is right — and cites its source.
Which estate represents the highest and most complete form of property ownership recognized by law?
Fee simple absolute — Fee simple absolute is the highest form of ownership: it lasts indefinitely, is freely transferable and inheritable, and carries no conditions that could terminate the estate.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
A deed conveys land 'to the City so long as it is used as a public park.' This creates:
A fee simple determinable — The phrase 'so long as' creates a fee simple determinable that automatically ends and reverts to the grantor if the stated condition ceases; the grantor retains a possibility of reverter.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
A deed states 'to Maria, but if the property is ever used for commercial purposes, then to the Local Land Trust.' What type of estate does Maria hold?
A fee simple subject to executory limitation — Because the condition passes title to a third party, the land trust, rather than reverting to the grantor, this is a fee simple subject to executory limitation, and the trust holds an executory interest.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
See every term in this area: Property Ownership glossary