hard · National Real Estate Exam property-ownership
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.
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