What type of estate does a hospital acquire if a donor conveys land "so long as it is used for hospital purposes"?

Study for the Indiana RECP Comprehensive Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare to ace your exam!

The type of estate acquired by the hospital in this scenario is known as a fee simple determinable. This specific type of estate is characterized by the fact that it automatically ends and reverts back to the original grantor if a certain condition is not met—in this case, if the land is not used for hospital purposes. The language "so long as it is used for hospital purposes" establishes a clear limitation on the use of the property.

In a fee simple determinable, the original donor retains a future interest in the property, meaning they have the right to reclaim it should the specified condition fail to be satisfied. This contrasts with other types of estates, such as a fee simple absolute, which does not come with any conditions or limitations on use. A license, on the other hand, grants permission to use property without transferring any estate or interest in the property itself. Lastly, a leasehold estate pertains to a temporary arrangement where the tenant has rights to occupy the property but does not hold ownership interest in it.

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