What is a fee simple determinable estate?
Fee Simple Determinable: when the grantor uses durational language in the condition, then upon the happening of a specific event, the estate will automatically terminate. For example, “to (insert person), as long as the land is used for a park”.
What is an example of fee simple determinable?
An example of a fee simple determinable would be: A to B so long as the property is used as a school. B would have a fee simple interest in the property so long as the property is used as a school. If, however, the property is no longer used as a school, then the property will automatically go back to A.
Is a fee simple determinable alienable?
Fee Simple Determinable based on Willhite v. Upon the creation of a determinable fee simple estate the grantor retains an interest known as a “possibility of reverter” which is both alienable and devisable…
What is fee simple condition precedent?
A “fee simple subject to condition precedent” is a type of fee simple defeasible estate that requires that a specific condition be met to keep the estate. This type of ownership lasts as long as that condition is satisfied.
Can you sell a fee simple determinable?
Note that a fee simple determinable can be transferred. In other words, in the above example, Barney can sell the land to whomever he wants. However, whoever buys the land still owns it subject to the condition that existed when Barney owned the land.
What does determinable fee mean?
Determinable fee is an estate limited to a person and his heirs, with a qualification annexed by which it is provided that the estate must determine whenever that qualification is at an end.
What is a possibility of a reverter?
The possibility of reverter is a future interest held by a grantor or transferor of property as a fee simple determinable (See possessory estate). Distinct from a fee simple absolute, a fee simple determinable is an estate that has a provision that automatically reverts the property to the grantor if an event happens.
What is the difference between fee simple absolute and fee simple determinable?
The rules pertaining to the fee simple absolute are simple. The holder has absolute ownership; his or her ownership lasts forever unless the holder transfers it. The two defeasible fees are the fee simple determinable and the fee simple subject to a condition subsequent.
What is the difference between a fee simple determinable estate and a fee simple condition?
The major difference is that while a fee simple determinable automatically ends if the grantee (the person who received the land) does not fulfill the condition, the grantee’s interest in a fee simple subject to condition subsequent does not automatically end if the event or condition occurs.
How long can a fee simple determinable last?
For example: To A for as long as the property is used for a museum. A has a fee simple determinable, and will hold the land for as long as it is a museum; the grantor holds a possibility of reverter. If the museum is shut down, the land will automatically be transferred to the grantor.
What does determinable mean in real estate?
defining something which may be terminated upon the occurrence of a particular event, used primarily to describe an interest in real property, such as a fee simple determinable, in which property is deeded to another, but may revert to the giver or go to a third person if, as examples, the receiver (grantee) marries.
What is a reverter in real estate?
Reverter, in the context of real property, means the return to the grantor or his/her heirs of real property after all interests in the property given to others have terminated. Reverter occurs when the property owner transfers a vested estate of lesser quantum than he started with. Reverter is also called “reversion”.
What happens in a fee simple determinable estate?
Upon the creation of a determinable fee simple estate the grantor retains an interest known as a “possibility of reverter” which is both alienable and devisable…
When does reversion occur in a fee simple title?
Reversion occurs when a finite estate ends, and there are no other grantees with a future interest in the property. If the grantor does not convey a fee simple title, but rather a finite estate, which will end at a particular time, then, if no other future interest had been conveyed, the property will revert back to the grantor.
When is the grantor retains the possibility of reverter?
Possibility of Reverter. The grantor retains a possibility of reverter if he conveys a fee simple determinable, which is a fee simple subject to some condition. For instance, if the grantor conveys land to be used to build a church, and the grantee does not build a church, then the land will revert back to the grantor automatically.
How does the possibility of reverter work in real estate?
If this happens, then the person’s interest in the property automatically ends and reverts back to the grantor (i.e., the person who transferred the interest), because the grantor retained a future interest in the property called a possibility of reverter. An example will make things clearer.