November 7, 201410 yr ^This. He's not a Master TECHNICALLY, but he strong enough to be considered one, anyway. Plus, the only reason he failed his Mark of Mastery is due to outside interference. The universe knows better.
November 7, 201410 yr Even though Terra wasn't deemed a Master, he does have the strength of one. If Xehanort hadn't interfered with the test, Terra would've passed, so he does possess the qualities of a Master and therefore has the ability to perform a Keyblade Inheritance Ceremony.
November 7, 201410 yr All of the these questions and more to be revealed in the next episode of Birth by Sleep!
November 7, 201410 yr How many times can I say this, "Master" is just a title it doesn't automatically give you a power boost or new abilities, merely the right to certain knowledge, which does not include the knowledge of the Inheritance Ceremony. Both Sora and Terra are on the level of Master, but just weren't given the title. Think of it like this, getting the title of "Master" is like getting a degree. You're education is technically complete and you have all the knowledge you need to function in your field but you can choose to continue learning more. Edited November 7, 201410 yr by Isamu_Kuno
November 7, 201410 yr To quote Braig and Master Xehanort, Terra is what you would call "Keyblade Master material". He's basically at the same skill range as Aqua, if anything they are pretty even, Terra might even be stronger. The only reason he isn't a master is because Master Xehanort advised Master Eraques against it, just to lure Terra down his path. Basically, he's Anakin Skywalker. He is by all means an unofficial Master, he just doesn't have the proper title.
November 7, 201410 yr It doesn't require you to become a master in order to make the Inheritance Ceremony.
November 8, 201410 yr Even assuming that it requires actually getting the title of Master, Xehanort unceremoniously gave that title to Terra partway through the game
Then how can he bequeath Riku?