Ownership

Ownership — Property Law (National) Understanding the forms of ownership and how title is transferred is consistently tested on the national portion of the exam, accounting for roughly 6–8 questions — knowing the exact differences between each ownership type and deed can mean the difference between passing and retaking. --- ## Why Ownership Forms Matter When a client buys property, *how* they hold title has enormous legal consequences: who inherits automatically, who must sign at closing, whether a co-owner can sell their share without permission, and what happens during divorce or death. The exam loves to test these distinctions with scenario-style questions. --- ## Freehold Estates — Ownership With No Fixed End Date A freehold estate is ownership of real property for an indefinite duration (as opposed to a leasehold, which is temporary). There are three main types you must know: ### Fee Simple Absolute The highest, most complete form of ownership. The owner holds the property forever, with no conditions, and can sell, lease, gift, or will it to anyone. If a question says "full ownership with no strings attached," this is your answer. ### Fee Simple Defeasible Ownership that *can be taken away* if a condition is violated. There are two subtypes: | Subtype | Trigger Language | What Happens if Violated | |---|---|---| | Fee Simple Determinable | "so long as," "while," "during" | Ownership *automatically* reverts to grantor | | Fee Simple Subject to Condition Subsequent | "but if," "provided that," "on condition that" | Grantor must take *legal action* to reclaim title | > Example: A deed states land is conveyed "so long as it is used as a park." If the owner builds…