Ross is a wealthy man. Out of the kindness of his heart, he transfers a piece of real property to his church, "for as long as the property is used for church purposes." Ross has created which of the following ownership interests?
A) Life estate to the church; reversion to Ross.
B) Fee simple absolute in the church.
C) Fee simple defeasible in the church; remainder to Ross.
D) Fee simple defeasible in the church; possibility of reverter to Ross.
D) Fee simple defeasible in the church; possibility of reverter to Ross.
To determine the ownership interest that Ross has created, we need to understand the different types of ownership interests in property.
A) Life estate to the church; reversion to Ross: A life estate is a type of ownership interest that grants a person the right to use and enjoy the property for the duration of their life. After the life tenant's death, the property reverts back to the original owner or their designated beneficiaries. In this option, Ross has not retained the right to ownership after the church's use, so this is not the correct answer.
B) Fee simple absolute in the church: Fee simple absolute is the highest form of ownership interest in real property. It grants the owner complete and indefinite ownership rights, with no conditions or restrictions. In this option, Ross has not conveyed an absolute ownership interest to the church, so this is not the correct answer.
C) Fee simple defeasible in the church; remainder to Ross: A fee simple defeasible is an ownership interest that is subject to a condition or restriction. If the condition is violated, the ownership may be terminated or reverted to the original owner or their designated beneficiaries. In this option, if the church ceases to use the property for church purposes, then the ownership could possibly revert to Ross. This appears to be the correct answer.
D) Fee simple defeasible in the church; possibility of reverter to Ross: This option is quite similar to option C. The only difference is the terminology used to describe the interest. Instead of "remainder," it uses "possibility of reverter" to describe the interest that Ross retains. This option is also correct.
So, the correct answer is either C) Fee simple defeasible in the church; remainder to Ross or D) Fee simple defeasible in the church; possibility of reverter to Ross, as both options accurately describe the ownership interest created by Ross.