Overview
Fee Simple Defeasible is a type of property ownership that comes with conditions which, if violated or not met, can result in the loss or reversion of the property. This form of ownership grants the holder most of the rights and privileges of property ownership, similar to fee simple absolute, but with stipulations that can act as conditions subsequent or determinables.
Types of Fee Simple Defeasible
- Fee Simple Determinable: Ownership automatically reverts to the grantor if a specific condition isn’t met.
- Fee Simple Subject to a Condition Subsequent: Ownership may revert to the grantor if a condition is violated, but this requires an action on the part of the grantor to reclaim the property.
Examples
Fee Simple Subject to a Condition Subsequent
- Example: Property granted to a charitable organization on the condition that the land is used for an orphanage. If the organization fails to use the property for this purpose, the grantor can take legal action to reclaim the property.
Fee Simple Determinable
- Example: Property granted to a wildlife protection agency as long as the property is used as a wildlife refuge. If it ceases to be used as such, the property automatically reverts to the grantor.
Frequently Asked Questions (FAQs)
What happens if the condition in a fee simple defeasible ownership is violated?
If the condition in a fee simple defeasible ownership is violated, the property can either automatically revert to the grantor in the case of a determinable or require action from the grantor to reclaim ownership in the case of a condition subsequent.
Can the condition in a fee simple defeasible property be changed?
Usually, the condition stipulated in the deed cannot be changed without mutual consent from both parties involved in the transaction, and often it requires legal procedures to do so.
Is fee simple defeasible common in real estate transactions?
While not as common as fee simple absolute, fee simple defeasible is still used in real estate transactions, particularly when the grantor has specific requirements on how the property should be utilized.
Fee Simple Absolute
Fee Simple Absolute is the most complete form of property ownership, where the owner has unlimited duration and transferability of the title.
Reversion
Reversion occurs when the property returns to the original grantor or their heirs if the conditions of a defeasible estate are violated.
Life Estate
A form of ownership that lasts for the lifetime of a specified individual, after which point the property reverts to another party.
Deed
A legal document that conveys ownership of property from one party to another and may contain conditions or stipulations.
Legal Title
The official ownership of property, which can be influenced by additional conditions or restrictions.
Online Resources
References
- Black, Henry Campbell. Black’s Law Dictionary. 11th ed., Thomson Reuters, 2019.
- The Restatement of the Law of Property, American Law Institute Publishers.
Suggested Books for Further Studies
- Understanding Property Law by John G. Sprankling.
- Real Estate Law by Marianne M. Jennings.
- The Law of Real Property by Richard R. Powell.
Real Estate Basics: Fee Simple Defeasible Fundamentals Quiz
### Which type of property law allows the property to automatically revert to the grantor if a specified condition is violated?
- [x] Fee Simple Determinable
- [ ] Fee Simple Absolute
- [ ] Life Estate
- [ ] Estate for Years
> **Explanation:** Fee Simple Determinable automatically reverts to the grantor without any need for action if a specific condition is violated.
### What kind of action is required from the grantor when a condition subsequent is violated in fee simple defeasible ownership?
- [x] Legal action to reclaim the property
- [ ] Immediate reversal of the title
- [ ] No action, as the property reverts automatically
- [ ] Payment of a penalty
> **Explanation:** In fee simple subject to a condition subsequent, the grantor must take legal action to reclaim the property if the condition is violated.
### Which of the following is the most complete form of property ownership?
- [ ] Fee Simple Determinable
- [ ] Fee Simple Defeasible
- [x] Fee Simple Absolute
- [ ] Life Estate
> **Explanation:** Fee Simple Absolute is the most complete form of property ownership, not subject to any conditions or stipulations.
### What tool is used to legally transfer property ownership, potentially with conditions?
- [ ] Mortgage
- [ ] Lease
- [x] Deed
- [ ] Easement
> **Explanation:** A deed is a legal document used to transfer property ownership and may contain conditions or stipulations.
### When does a reversion occur in real estate?
- [x] When the property returns to the original grantor after conditions are violated
- [ ] When the property is transferred to heirs after the owner's death
- [ ] When the property is sold
- [ ] When the property is rented out
> **Explanation:** A reversion occurs when the property returns to the original grantor or their heirs if the conditions of a defeasible estate are violated.
### What does "defeasible" signify in real estate?
- [ ] Ownership without any limits
- [ ] Unlimited duration of ownership
- [ ] Ownership lasting only for one's lifetime
- [x] Ownership subject to being revoked upon specific conditions
> **Explanation:** "Defeasible" indicates that property ownership may be revoked if certain specified conditions are not met.
### Which legal tool provides the grantor with reversionary rights for conditionally given property?
- [ ] Mortgage
- [ ] Will
- [x] Deed
- [ ] Agreement
> **Explanation:** A deed can include conditions that give the grantor reversionary rights should the specified conditions not be met.
### Which is an example of a condition in a fee simple subject to condition subsequent?
- [ ] Property is owned as long as minerals are not extracted
- [ ] Property reverts automatically if terms are violated
- [x] Property is owned if used as an orphanage
- [ ] Property is shared equally between two owners
> **Explanation:** A property subject to condition subsequent may require the property to be used as an orphanage or meet similar specific conditions.
### What signifies the primary difference between fee simple absolute and fee simple defeasible?
- [x] Unconditional vs. conditional ownership
- [ ] Urban vs. rural zoning
- [ ] Agricultural vs. residential use
- [ ] Personal vs. commercial use
> **Explanation:** The primary difference is that fee simple absolute is unconditional ownership, while fee simple defeasible is conditional and subject to specific stipulations.
### When comparing fee simple determinable and fee simple subject to a condition subsequent, what key difference is observed?
- [x] Automatic reversion vs. active legal reclamation
- [ ] Ownership duration vs. shared use
- [ ] Fixity vs. mobility
- [ ] Commercial use vs. development use
> **Explanation:** Fee simple determinable automatically reverts to the grantor upon condition breach, while fee simple subject to a condition subsequent requires the grantor to actively take legal steps to reclaim the property.
