Florida Broker Practice Exam

When property returns to the grantor or previous owner, it is known as what?

1. Estate in reversion

2. Estate in remainder

3. Life estate

4. Fee simple absolute

The correct answer is: Estate in reversion

When property returns to the grantor or previous owner, it is known as an estate in reversion. This legal concept occurs when a property is conveyed to another party (the grantee) but is done so with the intention that ownership will revert back to the original owner (the grantor) upon the occurrence of a specified event or the lapse of a certain time period. In an estate in reversion, the grantor maintains a future interest in the property that allows them to regain full ownership once the designated condition is met. This is particularly important in real estate law as it establishes a clear hierarchy of property rights and expectations between the parties involved. In contrast, the other options refer to different types of property interests. An estate in remainder involves a future interest that passes to a third party rather than returning to the grantor. A life estate grants possession to one party for their lifetime, after which the property passes either back to the original owner or to another designated party. Fee simple absolute represents the most complete ownership interest in real property but does not inherently include the reversion aspect. Understanding these distinctions is key for anyone studying real estate principles, particularly in the context of property law in Florida.