Oregon 30-Hour Real Estate Law Practice Test

Who retains ownership of a property with conditions if the assignee, Gibson, joins a band?

1. The Crows retain full ownership no matter what.

2. Gibson holds the property free and clear.

3. The Crows have a fee simple determinable estate.

4. The property becomes public domain.

The correct answer is: The Crows have a fee simple determinable estate.

The correct answer identifies that the Crows have a fee simple determinable estate. A fee simple determinable is a type of property ownership that is conditional on a certain event occurring or not occurring. In this scenario, the Crows' ownership of the property comes with specific conditions, which likely include the requirement that Gibson not engage in joining a band. If Gibson were to join a band, the condition would be violated, triggering the reversion of ownership back to the Crows. This form of ownership grants the Crows ongoing rights in the property as long as the conditions are met. The estate automatically reverts to them if the specific event happens (in this case, Gibson joining a band). This ensures that the Crows maintain a vested interest in enforcing the conditions tied to the property. Understanding this concept is essential because it illustrates how property rights can be structured with conditions. It emphasizes the nuanced ways in which ownership can be affected by the actions or statuses of others, particularly in real estate transactions.