Texas Real Estate State Practice Exam 2026 - Free Real Estate License Practice Questions and Study Guide

The correct answer is a Defeasible Fee. A Defeasible Fee, also known as a fee simple subject to a condition subsequent or a fee simple subject to a special limitation, is a type of estate in real property that can be invalidated or terminated if certain specified conditions are not met or are violated.

For instance, if the property is granted for a specific purpose, such as for use as a school, and that use ceases or is changed, the grantor may have the right to reclaim the property. This characteristic differentiates it from other types of estates like a Fee Simple Absolute, which is perpetual and not subject to any conditions that could terminate the estate.

In regards to the other choices, while a Life Estate is linked to the life of an individual and reverts back to the grantor upon their death, it does not operate on conditions that can be violated. A Qualified Defeasible Fee shares some similarities with a Defeasible Fee but is a specific version associated with certain limitations. Despite its unique attributes, it is often grouped under broader categories alongside Defeasible Fees. Lastly, Fee Simple Absolute represents the highest form of property ownership, and its status cannot be defeated by the violation of conditions, making it a