Definition
A Conditional Estate, also known as Fee Simple Defeasible, is a type of property ownership in real estate where the owner’s rights to the property may be revoked, limited, or terminated if specific conditions are met or violated. This is a form of Fee Simple Estate but with conditions attached, making it subject to termination or alteration.
Conditional estates are often used when property owners wish to control the future use of the property. For example, they might specify that the property must be used for educational purposes, and if it is used otherwise, the property reverts to the original owner or a third party.
Examples
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Educational Use Restriction: A property owner donates land to a local government with the condition that it must be used for building a school. If the government decides to build a shopping mall instead, the property automatically reverts to the original owner or their heirs.
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Alcohol-Free Condition: An owner grants a property to a relative under the condition that no alcohol will be consumed on the premises. If this condition is violated, the conditional estate ends, and ownership reverts to the grantor or another designated person.
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Environmental Missions: A conservation organization grants a piece of land to a city with the condition that it remains a public park. Should the city attempt to sell the land for commercial development, the property would revert back to the conservation organization.
Frequently Asked Questions (FAQs)
Q: Can a conditional estate be sold or inherited?
A: Yes, a conditional estate can be sold or inherited just like other forms of property ownership, but the condition attached to it continues to apply even after the sale or inheritance.
Q: What happens if the condition of a conditional estate is violated?
A: If the condition is violated, the property typically reverts to the original owner or a specified third party. This is known as a reversion or re-entry.
Q: Are there different types of conditional estates?
A: Yes, there are two primary types of conditional estates: Fee Simple Determinable, where the estate automatically ends upon a violation, and Fee Simple Subject to Condition Subsequent, where the original owner must take action to reclaim the property upon a violation.
Q: Can conditions be challenged in court?
A: Yes, conditions attached to a conditional estate can be challenged in court, particularly if they are vague, violate public policy, or are deemed unlawful.
Q: How are conditional estates enforced?
A: Enforcement of conditional estates typically requires legal action by the grantor or designated parties when the condition is breached. This may involve going to court to enforce reversion or re-entry.
Related Terms with Definitions
- Fee Simple Estate: The most complete form of ownership of real property, which is without conditions.
- Fee Simple Determinable: A type of fee simple estate that automatically ends when a specific condition is breached.
- Fee Simple Subject to Condition Subsequent: Similar to a fee simple determinable, but does not automatically terminate. The original owner must act to enforce the termination.
- Reversion: When property returns to the original owner after the condition of a conditional estate is violated.
- Re-entry: The act of retaking possession of the property by the original owner after a breach.
Online Resources
- Nolo’s Real Estate Law Center
- FindLaw: Real Estate Law Basics
- American Bar Association: Real Property Law
References
- “Real Estate Law” by Marianne M. Jennings
- “Principles of Real Estate Practice” by Stephen Mettling and David Cusic
- Cornell Law School, Legal Information Institute: Fee Simple
Suggested Books for Further Studies
- “Black’s Law Dictionary” by Bryan A. Garner
- “The Law of Property” by Sheldon F. Kurtz
- “Real Estate Principles” by Charles F. Floyd and Marcus T. Allen
