Prescott AZ Real Estate Fee Simple Defeasible
April 23rd, 2007
In Prescott AZ Real Estate fee simple defeasible estate is subject to a condition that determines when it will begin or when it will end. A good way to think of this form of ownership interest is that there exists some condition that can defeat its existance.
Two Types of Defeasibles
em>Fee Simple Subject to Condition Subsequent - this form of estate includes a prohitibed use of the property element. It can be thought of as the “must not do” or a “but if” estate.
As an example: if a grantor gives a non-profit organization land so that it can carry out its purpose, the grantor can state that the organization can keep the land as long as they don’t allow any gambling activities on the property. If they do, the estate is terminated.
This condition of the non-allowance of gambling on the property continues even if the church was to convey the property to someone else. How would the next owner or title holder know this? The no gambling clause will be listed in the title.
If the estate terminates because the condition is no longer being met, the grantor has the right of reentry which means that they have the right to take back the estate.
In the condition subsequent estate it is not automatic. The right of reentry means that the grantors or their heirs must take some form of physical action. They will need to physically reenter the property or they will need to go to court to terminate the estate.
Fee Simple Subject to Condition Precedent - this estate remains in effect as long as a specific condition is satisfied. It is also referred to as an “as long as” estate.
For instance, land can be deeded to an organization that is to use the property as an animal sanctuary. As soon as the use of the property ceases to be used as an animal sanctuary the grantor, or the heirs of the grantor retain the right of reversion interest and the property automatically returns to their ownership.
The condition precedent estate ends automatically and the reversion interest is also automatic.
Entry Filed under: Prescott Arizona AZ Real Estate Market
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