Possessory Estates and Future Interests

Question 1

Fee Simple Determinable

Answer 1

A fee simple so limited that it will end automatically when a stated event occurs. As soon as the condition happens, it AUTOMATICALLY goes back to owner (grantor). Includes words like: “as long as”, “until”, “during”, “while”, “so long as”. Examples: “To A and her heirs so long as A does not sell alcohol on the land”, “To A and her heirs as long as she uses the land to grow flowers”. Grantor retains possibility of reverter.

Question 2

Reversion

Answer 2

A reversion is the interest left in an owner when he carves out his estate a lesser estate and doesn’t provide who is to take the property when the lesser estate expires.

Question 3

Fee Simple Subject to Condition Subsequent.

Answer 3

A fee simple that doesn’t automatically terminate, but my be cut short or divested at the transferor’s election when a stated condition happens. Once the condition happens, O has to exercise the right to get it back. Does not happen automatically like a fee simple determinable. Includes works like “but if”, “however if”, “provided that”. Example: “To A and his heirs, but if A sells alcohol on the land, then O has the right to re-enter and reclaim the land”.