MemotivaReal Estate Exam: Property Ownership Types, Estates, Freehold vs Leasehold

What is fee simple defeasible and when can ownership be lost?

Real Estate Exam: Property Ownership Types, Estates, Freehold vs Leasehold

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Fee simple defeasible is a form of ownership that can be terminated if a specific condition is violated. There are two main types: fee simple determinable, which automatically ends when a stated condition occurs, and fee simple subject to condition subsequent, which requires the grantor to take legal action to reclaim the property after a violation. For example, a deed granting land on the condition that it be used only for educational purposes creates a defeasible fee. If the condition is broken, ownership may revert to the grantor or the grantor's heirs.
law.cornell.edu