Uniform Bar Exam Practice Test 2025 – Complete UBE Preparation

A fee simple subject to executory interest is indeed described as a property interest that automatically terminates upon a stated event. In this type of interest, the fee simple estate is granted, but it comes with a condition or limit. If that condition is met, the property interest automatically transfers to a third party, known as the executory interest holder, rather than reverting back to the original grantor as it would in a fee simple subject to a condition subsequent.

This kind of arrangement provides a clear mechanism for property transfer based on certain events, embodying the fundamental characteristics of a fee simple while incorporating the element of an automatic transfer based on specified conditions. The nature of this property interest ensures that the original holder does not retain control over the property indefinitely if the stated condition occurs.

Other options do not accurately capture the nature of a fee simple subject to executory interest. A fee simple that lasts forever without conditions does not involve any events leading to termination or transfer. Leasehold estates relate to time-specific possession rather than ownership interest with conditions. Shared ownership of property describes arrangements like tenancy in common or joint tenancy, which do not pertain to fee simple interests or their conditions.