Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What type of estate is given to Gibson with the condition regarding his rock band?

1. Fee simple absolute

2. Fee simple determinable

3. Life estate

4. Joint tenancy

The correct answer is: Fee simple determinable

The correct answer relates to a "fee simple determinable" estate, which is a type of freehold estate characterized by a condition that, if not met, causes the property to automatically revert to the grantor or their heirs. In this scenario, the condition regarding Gibson's rock band is crucial; as long as the condition is fulfilled, Gibson retains ownership. However, if the condition is violated—such as if he disbands the rock band—the title to the property will revert back to the original owner. This type of estate is distinguished by its language, which typically includes words such as "as long as," "while," or "until," indicating the ongoing nature of the condition attached to the estate. Therefore, as Gibson's ownership is contingent upon his adherence to the condition of maintaining his rock band, this establishes a fee simple determinable estate. In contrast, a fee simple absolute would grant full ownership without any conditions attached, a life estate would limit ownership to the lifetime of the individual, and a joint tenancy involves co-ownership with rights of survivorship but does not tie ownership to specific conditions.