California Real Estate Practice Exam

What term describes a property purchase restriction related to the manufacture of alcoholic beverages?

1. Easement

2. Fee simple absolute

3. Fee simple condition subsequent

4. Life estate

The correct answer is: Fee simple condition subsequent

A) An Easement restricts a person's right to use the property and would not be related to the manufacture of alcoholic beverages. B) Fee simple absolute gives the owner complete and unrestricted ownership of the property, so it would not include any restrictions related to the manufacture of alcoholic beverages. D) A Life estate only grants the ownership of the property for the duration of a person's life, so it would not include any restrictions related to manufacturing. Fee simple condition subsequent is the correct answer because it allows for the limitation or restriction of ownership if certain conditions are not met, in this case, if the property is not used for the manufacture of alcoholic beverages.