Ontario Mortgage Agent Practice Exam

What happens if a fee simple owner dies without a will and heirs?

1. The property escheats back to the Crown

2. The property goes to the local government

3. The property is sold at auction

4. The property is divided among neighboring landowners

The correct answer is: The property escheats back to the Crown

If a fee simple owner dies without a will and heirs, the legal term for this is known as dying "intestate." In this case, the property will escheat, or revert back, to the government (either state or Crown depending on the country). Option B is incorrect as the property does not automatically go to the local government. Option C is incorrect as the property would only be sold at auction if there were outstanding debts or taxes owed on the property. Option D is incorrect as neighboring landowners do not have a right to inherit the property unless specified by the owner's will.