Chapter 1
Kentucky Real Estate Law & Regulations
Course: Kentucky Real Estate Exams Prep
Subject: Kentucky State Sales Associate Exam Prep
Chapter: Property Interests Land Use Of Kentucky National Sales Associate Exam Prep
Freehold Estates (Ownership Interests):
- Fee Simple Absolute: This is what people commonly mean by "owning land." It is perpetual, freely transferable, and inheritable. The owner has the full "bundle of rights."
- Defeasible Fee: Ownership with strings attached.Case Study: The case of the land donated "so long as it is used as a public park" creates a fee simple determinable. The original deed likely contained words like "to the City of Oak Grove, so long as..." or "while used as..." If the condition is broken (they build a library), ownership automatically reverts to the grantor or their heirs through a reversionary interest. This is a powerful private land use control that can last for generations.
- Case Study: The case of the land donated "so long as it is used as a public park" creates a fee simple determinable. The original deed likely contained words like "to the City of Oak Grove, so long as..." or "while used as..." If the condition is broken (they build a library), ownership automatically reverts to the grantor or their heirs through a reversionary interest. This is a powerful private land use control that can last for generations.