What Happens When Defeasible Fees in Property?

Defeasible fees are interests in property that can be voided upon the occurrence of a specified event. When the condition is met, the property reverts back to the grantor or their heirs, often termed as a 'reversion'.

Defeasible fees, including fee simple determinable and fee simple subject to a condition subsequent, create a property interest that is contingent upon certain events. A fee simple determinable automatically terminates and reverts back to the grantor when a specified condition is violated, whereas a fee simple subject to a condition subsequent must be actively reclaimed by the grantor after a condition is breached. This creates a unique relationship between the grantor and the grantee regarding future interests in the property.

In the case of a fee simple determinable, the language of the transfer typically includes words such as 'so long as' or 'until,' which indicates that the estate is granted conditioned upon a duration. For example, if land is conveyed ‘to A so long as the land is used for farming,’ the grant ceases automatically if the land is used for any purpose other than farming, resulting in a reversion to the grantor.

Conversely, a fee simple subject to a condition subsequent would employ language like 'on the condition that,' which gives the grantor the right to reclaim the property upon a breach of the condition instead of an automatic termination. For instance, if a property is given 'to B on the condition that no alcoholic beverages are sold,' the owner can take steps to recover the property only after deciding to enforce the condition, rather than losing ownership immediately upon breach.

It's also essential to distinguish defeasible fees from other types of property interests, as the distinction affects rights during the period of conditional use and the procedures for reverting ownership. Additionally, courts often grapple with determining the clarity of the conditions attached to these grants, which can lead to disputes and require judicial interpretation.

Lastly, owners of land subject to a defeasible fee should recognize the contingency implications of their property rights as well as potential liabilities and responsibilities related to the conditions set forth in the grant.

• 1Duke v. Long (1980) - Clarified the distinctions between fee simple determinable and fee simple subject to a condition subsequent.
• 2Perry v. McLendon (1999) - Discussed enforcement rights of the grantor in fee simple subject to condition subsequent situations.
• 3Harris v. Jones (1978) - Examined the issues of reversion when conditions of a defeasible fee are violated.

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