"O to A, but if ..., to B" What is B's interest?

• A. Fee simple determinable
• B. Fee simple subject to condition subsequent
• C. Fee simple subject to executory limitation
• D. Fee simple absolute

Answer: (C)

The situation tests how future transfers under a condition affect the grant’s classification. When a grant to A includes a condition that, upon occurring, passes the property to a third party, the present estate in A is a fee simple subject to an executory limitation. The third party’s interest is an executory interest that will automatically vest when the condition occurs, shifting ownership from A to that third party. This differs from a fee simple determinable, which would automatically revert to the grantor, and from a fee simple subject to a condition subsequent, where the grantor has a right of entry to retake rather than an automatic transfer to a third party. So B holds a shifting executory interest.