What is true about Fee Simple Subject to an Executory Limitation?

A Fee Simple Subject to an Executory Limitation is an estate that is conveyed with a condition attached, where ownership is not only subject to the grantor’s condition, but also may terminate and automatically transfer ownership to a third party if that condition is breached. When the specified event occurs, the estate does not revert back to the grantor; instead, it is directly transferred to another individual, known as the executory interest holder. This distinguishes it from other types of fee simple estates by introducing a specific mechanism for transferring ownership to a new party based on certain conditions being met.

The other options do not accurately reflect the nature of a Fee Simple Subject to an Executory Limitation. For instance, the idea of automatic reversion to the grantor upon a breach is characteristic of a Fee Simple Subject to a Condition Subsequent, not an executory limitation. Additionally, while a Fee Simple Subject to an Executory Limitation can be inherited, it does not necessitate inheritance in the same way that other estates do. Lastly, it is important to note that this type of fee simple is not synonymous with a Fee Simple Absolute, which is an estate without any conditions or limitations affecting ownership.