A stipulation by the grantor of an estate in qualified fee subject to condition subsequent specifying that the grantee or his heirs may not commit certain acts with or on the real property in question, or use the property for certain purposes. If the condition is violated, the grantor may exercise the right of reentry and recover fee ownership (a process known as reversion).
Example: If the condition subsequent is that a historic structure may not be removed from the property, and the grantee removes it, the grantor has the right to reacquire full ownership of the property, with no compensation paid to the grantee.
Terms, Definitions, and Concepts: Real Estate, Title and Title Insurance, Legal (Law), Management
Added: Thu May 29 2008
Last Modified: Wed Jul 09 2008