A determinable fee refers to a form of ownership in which the property is owned by an individual, subject to specific conditions. Failure to meet these conditions results in the automatic transfer of ownership to another party. This type of ownership is also referred to as fee simple determinable or base fee.
A determinable fee refers to an ownership interest in real property that is bound by a condition or limitation. If this condition or limitation is violated, the ownership interest will be terminated. This type of ownership interest is also known as a fee simple determinable or a base fee. For instance, in Example 1, John conveys a piece of land to the local school district with the condition that it must be used solely for educational purposes. If the school district fails to adhere to this condition, John’s ownership interest will automatically end, and the land will revert back to him. Similarly, in Example 2, Mary conveys her house to her son, Tom, with the condition that he must reside in the house for a minimum of five years. If Tom moves out before the completion of the five-year period, Mary’s ownership interest will be terminated, and the house will revert back to her. These examples demonstrate how a determinable fee is contingent upon a specific condition, and if that condition is not fulfiled, the ownership interest will be automatically terminated.
A determinable fee is a type of property interest that can be terminated if a specific event or condition occurs.
Examples of determinable fees include a property interest that ends when a certain activity ceases, such as a lease that terminates if the property is no longer used for a specific purpose.
A determinable fee is a type of fee simple estate, but it includes a condition that, if violated, can result in the property interest being terminated.
Yes, a determinable fee can be inherited and passed down to heirs, but the condition that could terminate the property interest would still apply.
If the condition of a determinable fee is violated, the property interest automatically terminates and reverts back to the original grantor or their heirs.
Yes, a determinable fee can be sold or transferred to another party, but the condition that could terminate the property interest would still apply to the new owner.
A determinable fee is created through a deed or other legal instrument that specifies the condition or event that could terminate the property interest.
The condition of a determinable fee can be changed through a legal process, such as obtaining consent from the original grantor or their heirs.
Owning a determinable fee means that the property interest is subject to a specific condition or event that could result in its termination, so it’s important to be aware of and comply with the condition.
It’s advisable to consult with a lawyer when creating or dealing with a determinable fee, as they can provide guidance on the legal requirements and implications of this type of property interest.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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