Fee Simple Determinable:
A fee simple determinable is a form of ownership that comes with a condition attached to it. The condition is that the ownership will end if the condition is not met. For example, a deed may state that the land is owned in fee simple determinable “so long as it is used for agricultural purposes.” If the land is no longer used for agricultural purposes, the ownership will automatically terminate and revert to the original owner or their heirs.

Fee Simple Subject To Condition Subsequent:
A fee simple subject to condition subsequent is a form of ownership that also comes with a condition attached to it. However, the condition is that the ownership may be terminated if the condition is not met. For example, a deed may state that the land is owned in fee simple subject to condition subsequent “so long as it is used for residential purposes.” If the land is no longer used for residential purposes, the owner may terminate the ownership and take possession of the land.

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Property created when land is conditionally transferred
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AN nullable property is created when a grantor conditionally transfers land. If the event or condition declared by the grantor occurs, the transmission may be null or, at least, subject to annulment. (An estate not subject to such conditions is called an irrevocable estate.) Historically, the common law has frowned upon the use of revocable property as it interferes with owners’ enjoyment of their property and as such makes it difficult to create a valid future interest. Unless revocable ownership is clearly intended, modern courts will interpret the language against this type of ownership. Three types of revocable properties are the simple determinable fee, the simple fee subject to an enforceable limitation or interest, and the simple fee subject to a subsequent condition. A lifetime estate can also be revocable.

Because a revocable estate always grants less than a total simple ratea revocable property will always create one or more future interests.

simple determinable rate

A simple determinable rate is a property that will automatically terminate when the stated event or condition occurs. The interest will revert to the grantor or to the grantor’s heirs. Usually, a possibility of reversing follows a simple determinable rate. However, the possibility of reversal does not arise from a simple determinable rate subject to an enforceable interest, because the possibility of reversal is with the grantor while the enforceable interest is with a third party. Durational language such as “for A as long as the property is used for a park” creates a simple determinable rate and possibility of reversal. Other duration words interpreted to grant a simple determinable rate include “until”, “during”, and “while”.

Some jurisdictions of U.S abolished that interest. For example, kentucky abolished the simple determinable rate and possibility of reversal by law in 1960. An attempt to create such an interest is interpreted as a simple rate subject to a subsequent condition (see below), and a person who would have possibility of reversal in common law, rather than have the right of entry.

A simple determinable rate does not violate the rule against perpetuitiessince the possibility of reversal is not subject to the rule.

Simple fee subject to an enforceable limitation

A simple fee subject to an enforceable limitation is an ownership that ends when a specific condition is met and then transferred to a third party. Interest will not revert to the grantor. If the condition is met, the beneficiary loses the interest and the third party automatically earns it.

Example:

O grants Blackacre to A and A’s heir; but if A accepts a chocolate bar from C, then to B and B’s heirs.

Here, O is the original owner. He awards A a simple fee subject to the subsequent condition that he does not accept a chocolate bar from C. However, unlike a simple fee subject to a subsequent condition, Blackacre goes to a third party (B) instead of the grantor (O) if the condition is met. Furthermore, unlike a simple fee subject to a subsequent condition, B automatically earns a stake in Blackacre and not only has the mere right to sue for reentry.

The transfer of Blackacre by the original beneficiary carries with it the original limitation, but the subsequent beneficiary’s interest may become absolute flat fee upon the subsequent death of the original beneficiary. For example, A sells Blackacre to D. If A subsequently accepted an offer of chocolate from C, Blackacre automatically goes to B. However, if A died without ever accepting chocolate from C, the condition could not be satisfied. D would then have an absolute simple rate.

Simple rate subject to subsequent condition

A simple fee subject to a subsequent condition is created when the wording of a grant supports the conclusion that the grantor intends to convey a absolute simple rate but attached a condition to the grant that if a specified future event occurs, the grantor will receive its absolute simple rate back, provided that the grantor exercises his right of entry (or power of termination). Thus, a simple fee subject to a subsequent condition does not automatically expire upon the occurrence of the condition. Future interest is called a “right of re-entry” or “right of entry,” and ownership only reverts to the original donor if he exercises that right.

The right of entry is not automatic but must be exercised to terminate the simple fee subject to further condition. To exercise the right of entry, the holder must take substantial measures to recover possession and title, for example, through a lawsuit. Physical entry is not required, but the holder must do more than just proclaim an intent to withdraw.

One of the language used to create a simple fee subject to a subsequent condition and a right of entry is “for A, but if A sells alcohol on the land, then the grantor has the right of entry (or power of rescission)”.

Common uses include language such as “may”, “but if”, “however”, or “provided that…”

References


Source: Defeasible estate
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