Which of the following statements is true regarding the reversion of Fee Simple Defeasible estates?

The statement that Fee Simple Determinable has automatic reversion to the grantor is accurate because, in this type of estate, if the condition upon which the fee is based is violated, the property automatically reverts back to the original grantor. This distinctive feature is a fundamental characteristic of Fee Simple Determinable estates. The automatic nature of this reversion means that no additional action is required by the grantor to reclaim ownership; it occurs immediately upon the breach of the defined condition.

Fee Simple Subject to a Condition Subsequent, however, does not provide for automatic reversion. Instead, it allows the grantor the right to reclaim the property but requires the grantor to take action to exercise that right after a condition is violated. Hence, the distinction between these two forms of defeasible fees reinforces why the notion of automatic reversion is specific to Fee Simple Determinable.

This understanding is pivotal in real estate law, as it influences how property rights transfer and can affect the stability and security of property ownership depending on the type of fee simple estate involved.