Defeasible Estate - Fee Simple Determinable

Fee Simple Determinable

A fee simple determinable is an estate that will end automatically if the stated condition occurs. The interest will revert to the grantor or the heirs of the grantor. Normally, a possibility of reverter follows a fee simple determinable. However a possibility of reverter does not follow a fee simple determinable subject to an executory interest. Durational language such as "to A as long as the property is used for a park" creates a fee simple determinable and a possibility of reverter.

Some jurisdictions in the United States have abolished this interest. For example, Kentucky abolished the fee simple determinable and possibility of reverter by statute in 1960. An attempt to create such an interest is construed as a fee simple subject to condition subsequent (see below), and a person who would have possibility of reverter at common law will instead have a right of entry.

A fee simple determinable does not violate the rule against perpetuities, since the interest in real property reverts to the grantor or his heirs, who are measuring lives.