Fee Simple Defeasible: Your Comprehensive Guide to Conditional Property Ownership
Introduction
Fee Simple Defeasible is a term used to describe a type of property ownership that is subject to certain conditions or events. Unlike Fee Simple Absolute, where the ownership is unconditional and perpetual, Fee Simple Defeasible comes with terms that can limit the duration or purpose of ownership.
Types of Fee Simple Defeasible
There are primarily two types of Fee Simple Defeasible:
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Fee Simple Subject to a Condition Subsequent: Ownership is conditional upon the property being used for a specific purpose. If the condition is violated, the original grantor or their heirs can reclaim the property but must take legal action to do so.
- Example: A property granted on the condition that it be used for an orphanage. If it’s used for any other purpose, the original grantor or their heirs can reclaim the title through legal proceedings.
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Fee Simple Determinable: This type of ownership automatically reverts back to the original grantor if a specified condition is violated. Unlike Fee Simple Subject to a Condition Subsequent, there is no need for legal action for the reversion to occur.
- Example: A property granted as long as it is used as a wildlife refuge. If it ceases to serve that purpose, the ownership automatically reverts to the original grantor.
Benefits and Drawbacks
Fee Simple Defeasible can be beneficial because it allows grantors to ensure their property is used in a desired manner. However, for the grantee, these conditions can be a drawback as they limit what can be done with the property and may risk ownership forfeiture.
Real-World Applications
Fee Simple Defeasible conditions are often used by municipalities, conservation organizations, and educational institutions to ensure land is used in a manner that benefits the public or adheres to specific missions.
FAQs
Q: What happens if the conditions of a Fee Simple Defeasible are violated? A: In the case of Fee Simple Subject to a Condition Subsequent, the original grantor or their heirs must take legal action to reclaim the property. In Fee Simple Determinable, the property automatically reverts to the grantor without the need for legal action.
Q: Can a Fee Simple Defeasible condition be contested in court? A: Yes, the conditions and their enforcement can be contested legally, often requiring the interpretation of the grant’s wording and intent.
Q: Are there any taxes implicanted in a Fee Simple Defeasible ownership? A: Property taxes will generally apply as with any real estate. However, if the property use conditions lead to a reversion, there could be tax implications associated with the transfer of ownership.
Related Terms: Fee Simple Absolute, Property Deed, Estate in Land, Fee Simple Determinable, Fee Simple Subject to Condition Subsequent.
