Estate in qualified fee subject to condition subsequent
An estate in qualified fee subject to condition subsequent is a freehold estate in which the former owner (the grantor) has specified that the new owner (the grantee), as well as his or her heirs or assigns, cannot violate a stipulated condition. If they do, the former owner retains the right of re-entry, which allows him or her to re-enter the land to make sure the condition has not been violated. The right of re-entry is also the legal mechanism through which the current estate ends and the former owner can recover fee simple ownership (a process known as reversion). Generally, the right of re-entry can be exercised only if an action is performed that has specifically been prohibited. Whether or not to take legal action to recover fee ownership of the property is at the sole discretion of the grantor.
Also known as an Estate in qualified fee conditional.
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