Which type of estate indicates that the holder has interests that can be lost if a certain event happens?

A Fee Simple De-Feasible estate is a type of property ownership where the holder has full ownership rights, but those rights are contingent upon certain conditions being met. This means that if a specified event occurs, the ownership can revert back to the grantor or a third party. Such conditions might include the property being used for a particular purpose, or it being maintained in a certain way. If the condition is breached, the estate can be extinguished, resulting in the loss of ownership.

In contrast, a Conventional Life Estate provides the right to use the property for the duration of someone's life but does not involve losing ownership based on an event. A Fee Simple Absolute is the most complete form of ownership, without any conditions or limitations, and a Legal Life Estate typically arises from state law and allows individuals to use the property for their lifetime, with the property passing to someone else afterwards. None of these alternatives incorporate the aspect of a contingent event leading to a loss of ownership, making Fee Simple De-Feasible the correct choice.