hard · National Real Estate Exam
A grantor deeds Blackacre 'to my daughter and her heirs, but if alcohol is ever sold on the premises, then to my church.' Years later the daughter operates a wine shop on the parcel.
In a jurisdiction that has abolished the Rule Against Perpetuities only as applied to charitable-to-charitable gifts (and otherwise enforces it), what is the most accurate characterization of the present state of title?
- The church automatically owns Blackacre, because the executory limitation in favor of the church vested the moment alcohol was sold on the premises.
- The daughter holds a fee simple absolute, because the executory interest violated the Rule Against Perpetuities and was struck, leaving the conditional language as mere unenforceable surplusage.
- The daughter holds a fee simple subject to a condition subsequent, and the grantor's heirs may elect to re-enter because the void gift to the church reverted the future interest to the grantor.
- The church holds a vested remainder that became possessory on the sale of alcohol, because charitable gifts are exempt from the Rule Against Perpetuities.
Sign up free to see the explanation and track your rank →
More National Real Estate Exam practice
- A broker's employment contract with a seller is officially called the:
- What is the current status of the contract?
- A buyer defaults on a purchase agreement, and the seller chooses to keep the earnest money
- A buyer makes a written offer to a seller. Two days later, before the seller has responded
- A contract for the sale of a property is signed. Before closing, the property is destroyed
- A contract for the sale of real estate that has been signed by both parties is valid, but
- A contract that is valid and binding but allows one party to avoid the agreement because o
- A contract that is valid and enforceable until it is canceled by a party who was a victim