real estate

Defeasible fee estate

A qualifying estate in which the grantee may lose their interest depending on the occurrence or non-occurrence of a certain event that has been defined. There are two distinct categories of defeasible fee estates, which are as follows - (1) Those that are known as a condition subsequent and which include the opportunity of re-entry, and (2) those that include a qualified limitation and which result in the grantee's ownership being terminated automatically with the option to revert (otherwise known as a fee simple determinable). When it comes to drafting a qualified limitation defeasible fee estate, the terms "as long as," "during," and "during" are essential.