What type of estate allows for property ownership to revert to the original owner if stipulations are not met?

The correct answer is associated with the concept of "fee simple defeasible." This type of estate creates a condition under which ownership of the property can return to the original owner if a specified condition, or stipulation, is not fulfilled. In simpler terms, it involves a situation where the property is granted with certain terms or requirements that must be adhered to; failure to comply with these terms allows the original owner or their heirs to reclaim the property.

For example, if a property is conveyed to a new owner with the stipulation that it must be used for educational purposes, the property ownership would revert back to the original owner if the new owner fails to uphold that condition. This type of ownership emphasizes the importance of adhering to the agreed-upon terms attached to the property.

In contrast, a leasehold estate is a temporary arrangement, a life estate provides rights during a person's lifetime but does not revert under conditions, and fee simple absolute is the highest form of property ownership free from conditions and limitations.