Which type of estate can be extinguished, annulled, or revoked?

The correct answer, fee simple defeasible, is significant because this type of estate can be conditioned upon the occurrence or non-occurrence of a specific event. A fee simple defeasible grants ownership that comes with certain restrictions or conditions, which means that if the conditions are violated, the estate can be automatically terminated or reverted to the grantor or their heirs.

For example, if property is granted with the condition that it must be used for a specific purpose, such as a park, and that purpose ceases, the previous owner can reclaim the property. This flexibility in estate law allows for the potential annulment or revocation of the ownership status based on the specified criteria.

In contrast, fee simple absolute represents the highest form of ownership, with no conditions attached, making it unextinguishable under normal circumstances. Life estates provide ownership for the duration of an individual’s life but revert to a grantor or third party afterward, and joint tenancy involves co-ownership that can only be severed under specific conditions, such as the death of one owner. Neither of these forms has the same conditional structure that allows for cancellation like fee simple defeasible does.