Defeasible Fees

Question 1

What is a defeasible fee?

Answer 1

present possessory estates subject to conditions

Question 2

What is a fee simple determinable and what are the common words?

Answer 2

Ends automatically upon the happening of a stated event and transfers possession back to the grantor or heirs. Has a possibility of reverter. Words indicating that the ownership is to last only for a certain time period. The conveyance either requires a certain condition to exist for the present estate to continue or requires the present estate to terminate upon the happening of a particular even.
a. COMMON WORDS: “as long as”, “so long as”, “during”, “while”, “unless”, “until”.

Question 3

Fee Simple Subject to Condition Subsequent

Answer 3

Allows the grantor to reclaim the property upon occurrence of the condition but does not make a transfer of ownership automatic. Instead, the grantor must claim a right of entry or a power of termination.
a. COMMON WORDS: “but if”, “provided that”, “on condition that”.

Question 4

Fee Simple Subject to Executory Limitation/Executory Interest.

Answer 4

Defeasible fee followed by a future interest held by another party not the grantor.

i. Shifting- shifting from one grantee to the other. O→A for life, then to B and his heirs if B marries S.
ii. Springing- springs from the grantee back to the grantor and then to another grantee. The gap must be avoidable. EX. O→A for life, and one day after A’s death, to Barry and his heirs.