Which statement best describes a fee simple subject to an executory interest?

Which statement best describes a fee simple subject to an executory interest?

• A. The grantor retains a right of reentry.
• B. It ends upon the death of the measuring life.
• C. A third party holds a future interest that can divest the grantee on a condition.
• D. It is the same as a fee simple absolute.

Answer: (C)

In a fee simple subject to an executory interest, the owner holds a full, indefinite ownership, but a future interest is held by a third party that can divest the current owner automatically when a specified condition happens. The crucial point is that the divesting interest is not kept by the grantor; it belongs to someone else and triggers a transfer upon the condition. For example, a grant like “To A, but if X occurs, then to B” gives A a fee simple subject to an executory limitation. When X happens, ownership doesn't revert to the grantor; it automatically shifts to B because B holds an executory interest that divests A. This differs from options describing a grantor’s right of reentry (that would be a fee simple subject to a condition subsequent) or from a situation tied to a measuring life, or from a plain fee simple absolute with no future interests. The defining feature here is the third party holding a future interest that can divest the grantee on a condition.

In a fee simple subject to an executory interest, the owner holds a full, indefinite ownership, but a future interest is held by a third party that can divest the current owner automatically when a specified condition happens. The crucial point is that the divesting interest is not kept by the grantor; it belongs to someone else and triggers a transfer upon the condition.

For example, a grant like “To A, but if X occurs, then to B” gives A a fee simple subject to an executory limitation. When X happens, ownership doesn't revert to the grantor; it automatically shifts to B because B holds an executory interest that divests A.

This differs from options describing a grantor’s right of reentry (that would be a fee simple subject to a condition subsequent) or from a situation tied to a measuring life, or from a plain fee simple absolute with no future interests. The defining feature here is the third party holding a future interest that can divest the grantee on a condition.