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Fee simple defeasible

National Real Estate Exam glossary · Property Ownership

Definition

A fee estate that may be lost (defeated) if a stated condition occurs or a stated use ceases. It includes the fee simple determinable (which ends automatically, leaving a possibility of reverter) and the fee simple subject to a condition subsequent (which the grantor may terminate through a right of re-entry).

Fee simple defeasible in plain English

This is ownership with an "if" attached — you truly own the property, but you could LOSE it if a certain condition happens or a required use stops. There are two flavors. In a "determinable" estate, ownership ends AUTOMATICALLY the instant the condition breaks (say, land given "as long as it's used as a park" — the moment it isn't, it snaps back to the original giver, who holds a "possibility of reverter"). In a "condition subsequent" estate, it doesn't end automatically; the original giver has the OPTION to step in and reclaim it (their "right of re-entry"). It's like lending your friend a game console "so long as you don't sell it": the automatic version yanks it back instantly, while the option version means you get to decide whether to take it back.

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