Fee simple defeasible

Definition

A fee simple defeasible is a type of property interest that grants ownership subject to certain conditions or limitations, meaning that the property can revert back to the original grantor if those conditions are not met. This form of ownership provides a strong degree of control and rights to the owner, but also imposes obligations that can lead to the loss of title if violated. It’s crucial in understanding the complexities of property rights and how they can be structured with specific terms.

5 Must Know Facts For Your Next Test

1. Fee simple defeasible can be further divided into two main types: fee simple determinable and fee simple subject to a condition subsequent.
2. In a fee simple determinable, ownership automatically ends when a specified condition occurs, while in a fee simple subject to a condition subsequent, the original owner must take action to reclaim the property if the condition is violated.
3. The duration of a fee simple defeasible can potentially last indefinitely, but it is always tied to specific conditions that, if not met, lead to reversion.
4. This type of ownership is often used in situations involving land donated for specific purposes, like parks or schools, ensuring the land is used as intended.
5. When a fee simple defeasible is involved in a transaction, buyers must carefully review the conditions attached to ensure compliance and prevent losing the property.

Review Questions

• What are the key differences between fee simple defeasible and fee simple absolute?
  • The main difference between fee simple defeasible and fee simple absolute lies in the conditions attached to ownership. Fee simple absolute grants complete and unconditional ownership without any limitations, allowing owners full control over their property. In contrast, fee simple defeasible involves specific conditions that can lead to the property reverting back to the original grantor if those conditions are not upheld, making it a more complex form of ownership.
• How does a reverter clause function within a fee simple defeasible arrangement?
  • A reverter clause is crucial in a fee simple defeasible because it outlines the terms under which property ownership can revert back to the original grantor. This clause specifies the conditions that must be maintained by the current owner; if these conditions are breached, the grantor has the right to reclaim ownership of the property. It serves as a legal safeguard for grantors to ensure that their intentions for the property are honored over time.
• Evaluate how fee simple defeasible interests can impact land use planning and community development.
  • Fee simple defeasible interests can significantly influence land use planning and community development by imposing restrictions that align with community goals. For instance, when land is donated with a fee simple defeasible interest for public parks or schools, it ensures that these properties serve their intended purpose. However, this can also create challenges if future developments clash with existing conditions attached to properties, leading planners and developers to navigate complex legal frameworks to maintain compliance while meeting community needs.

Related terms

fee simple absolute: A type of property ownership that gives the owner full rights without any conditions or limitations on the use of the property.

reverter clause: A provision in a deed that specifies that the property will revert to the grantor or their heirs if certain conditions are not fulfilled.

conditional use permit: A permit that allows for a specific use of land, contingent on compliance with particular requirements set by a governing authority.