Fee Simple Defeasible Laws

A fee simple defeasible, also known as a defeasible fee estate, is a type of property interest that is subject to a condition or specific event. The holder of a fee simple defeasible has full ownership rights to the property, but those rights could be lost if a specified condition occurs or fails to occur. This type of estate allows the original owner to exercise control over the future use of the property, even after it has been sold or transferred.

Are There Different Types of Fee Simple Defeasible?

Yes, there are a few different types of fee simple defeasible estates, one of which is the fee simple determinable estate. A fee simple determinable estate is a type of defeasible estate where the property automatically reverts to the original owner or grantor if the condition is violated or not met.

The language used in the deed might include phrases like “so long as,” “while,” “during,” or “until,” which all indicate that the estate is fee simple determinable.

Here’s a hypothetical scenario to illustrate a fee simple determinable estate:

Suppose Mr. Green owns a large tract of land and decides to sell it to a local school district to build a new school. In the deed of the property, he includes the provision “so long as the property is used for educational purposes.”

Under these terms, the school district has full ownership rights and is free to use the property as it wishes. However, this ownership is subject to the condition specified in the deed — that the property be used for educational purposes. This condition creates a fee simple determinable estate.

Let’s say after several years, the school district closes the school due to budget cuts and decides to sell the property to a private developer who plans to build a shopping center. The moment the property ceases to be used for educational purposes, it automatically reverts back to Mr. Green as per the “so long as” clause in the deed.

In this scenario, the school district doesn’t need to do anything wrong or illegal for the reversion to occur. The simple fact that the condition (use for educational purposes) is no longer met is enough to trigger the reversion of the property to Mr. Green. That is the essence of a fee simple determinable estate.

Fee Simple Subject to Condition Subsequent

Another type of defeasible fee estate is a “fee simple subject to condition subsequent.” This differs from a fee simple determinable estate in that if the condition is violated, the original owner must take legal action to reclaim the property; it does not automatically revert back.

Let’s illustrate a fee simple subject to condition subsequent with a hypothetical scenario:

Suppose Mrs. Robinson owns a plot of land and sells it to the local community with the stipulation in the deed that the land should be used “only for community recreational activities.” This type of clause creates a “fee simple subject to condition subsequent.”

A few years later, the community decides to use a portion of the land to build a small commercial complex. This decision technically violates the condition set by Mrs. Robinson in the deed. However, unlike a fee simple determinable, the property does not automatically revert back to Mrs. Robinson.

In order for Mrs. Robinson to reclaim ownership, she must be aware of the violation and take affirmative legal action to enforce the condition. This typically means she would need to file a lawsuit to have the court recognize the violation of the condition and order the termination of the community’s estate, thereby reverting the property back to her.

In this way, the “fee simple subject to condition subsequent” estate allows an original owner to maintain some control over the property’s usage in the future, but it requires the owner to actively enforce these conditions if they are breached.

What Are Some Legal Issues Associated with Fee Simple Defeasible?

While fee simple defeasible estates can allow for greater control over property use, they can also present unique estate planning complications. These may include disputes over the conditions in the deed, disagreements about whether a condition has been violated, and conflicts over property reversion.

The language used in the deed is crucial. For example, if the language does not clearly state the condition, or if it’s ambiguous, it could lead to disputes about the intent of the original owner. This could result in litigation to interpret the deed or determine ownership rights.

Here are a few hypothetical scenarios to illustrate possible legal issues associated with fee simple defeasible estates:

Scenario 1 – Ambiguity in Language

Suppose Mr. Johnson sells a piece of land to Ms. Williams with the deed stating that the land is to be used “for educational purposes.” After a few years, Ms. Williams decides to open a daycare center on the land. Mr. Johnson objects, arguing that a daycare center does not align with his intended use of “educational purposes.” This dispute could lead to litigation to clarify the ambiguous term “educational purposes” in the deed.

Scenario 2 – Dispute over Condition Violation

Mr. Smith grants a property to the local city under a fee simple determinable estate, with the condition that the property is to be used as a public park. After several years, the city builds a small office building on the corner of the park to house park management staff. Mr. Smith contends that this violates the condition of maintaining the entire property as a public park, while the city argues that the office building supports the park’s function.

This disagreement could lead to a legal battle over whether the condition has been violated and, if so, whether the property should revert back to Mr. Smith.

Scenario 3 – Conflicts over Property Reversion

Let’s say Ms. Davis sells a property to Mr. Thompson under a fee simple subject to condition subsequent estate, with the condition that no alcohol shall be sold on the premises. After a while, Mr. Thompson leases part of the property to a restaurant that wants to serve alcohol.

Ms. Davis seeks to reclaim the property due to violation of the condition, but Mr. Thompson argues that the lease to the restaurant does not constitute selling alcohol. This situation could lead to a dispute over whether the condition was violated and whether the property should revert back to Ms. Davis. A property lawyer would be extremely valuable in resolving this dispute.

Do I Need A Lawyer?

Estate planning, especially when it involves fee simple defeasible or determinable fee estates, can be challenging. An experienced property lawyer can help you understand your rights, draft or interpret deeds, and address any legal issues that arise.

For instance, if you’re considering establishing a fee simple defeasible estate, a lawyer can help you draft clear and effective conditions to avoid future misunderstandings. If you’re a property owner dealing with a potential violation of a condition in your deed, a lawyer can advise you on the best course of action, and, if necessary, represent your interests in court.

Don’t leave your property rights and interests to chance. Connect with an experienced, reputable estate lawyer through LegalMatch. Start your search for the right lawyer with LegalMatch today. Your future peace of mind depends on the actions you take now.