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Qualified Fee Estate Another type of freehold estate is the qualified fee estate, also known as a fee simple defeasible estate. "Defeasible" is a term used to indicate that something is capable of being annulled or made void. Therefore, any estate that is conveyed by a grantor with a condition attached to it is considered a qualified fee estate. Two points to remember about qualified fee estates: There are two kinds of qualified fee estates: fee simple determinable and fee on condition. Their qualification as one or the other is determined by the language around the condition attached to the property. The condition placed on the estate creates an encumbrance that "runs with the land," meaning it is against the land (use) and NOT the owner of the land. It is also possible to construct a deed with conditional language where the grantor retains their title until certain conditions are met. For example, if Karen has her heart set on grandchildren, she could set it up where title to the family home conveys to her daughter, Sue, upon the birth of a grandchild. Talk about pressure, Jalissa ! Fee Simple Determinable A fee simple determinable estate is one of the two types of defeasible fee estates. This particular defeasible estate will come to an end automatically and immediately upon the occurrence of a designated event; the time of that occurrence, however, is uncertain. No legal action is required of the grantor in order to assume recovery of this kind of estate. Pro Tip: An easy way to remember this key term is focusing on the word "determinable." It’s determined that x person will regain the property if y thing happens. EXAMPLE A grant of land from an owner to her church “so long as the land is used only for religious purposes” is a fee simple determinable estate. If the church decides to use the land for a non-religious purpose, the title will revert automatically to the previous owner (or the heirs or successors)
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