Which of the following best explains a fee simple on condition subsequent?

A fee simple on condition subsequent is a type of fee simple estate that allows for ownership of property under certain conditions. The key characteristic of this estate is its potential to be divested or ended if a specific condition occurs, meaning that ownership can be challenged if the condition is not met.

In this context, the correct answer highlights that a fee simple on condition subsequent is linked to a specific event or condition that, if triggered, can result in the loss of ownership. This distinguishes it from other forms of property ownership, such as a fee simple absolute, which does not have conditions tied to the ownership.

The other choices do not accurately capture the essence of a fee simple on condition subsequent. For instance, the idea that an estate automatically ends upon a condition refers to a different property interest known as a fee simple determinable, which ends immediately upon the occurrence of the condition. Ownership that lasts for a specific duration suggests a leasehold interest or life estate, rather than a fee simple estate that is conditional. Lastly, the concept of a base fee requiring annual payments does not pertain to the conditions of the fee simple on condition subsequent but rather sounds more aligned with rented or lease agreements.

Understanding these nuances helps clarify the nature of property ownerships and the