A determinable fee is a type of property ownership that lasts as long as a specific condition is met. If that condition ends, the ownership automatically reverts back to the original owner or their heirs. This type of estate is often referred to as a base fee, qualified fee, or defeasible fee.
Determinable fees are commonly used in real estate transactions. They are relevant in property law and estate planning, where conditions may be placed on the use of property. For example, a property might be granted to someone with the stipulation that it must be used for educational purposes. If that use ceases, the property automatically returns to the grantor.
Users can manage these transactions using legal forms available through services like US Legal Forms, which provide templates drafted by attorneys.
Here are a couple of examples of abatement:
Example 1: A landowner grants a parcel of land to a school district for educational purposes. If the school ceases to operate on that land, the ownership returns to the landowner.
Example 2: A property is given to a non-profit organization with the requirement that it must be used for community service. If the organization stops providing those services, the property reverts to the original owner. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Recognizes determinable fees but has specific conditions regarding their enforcement. |
| Texas | Allows for determinable fees with clear language in property deeds. |
| New York | Similar to other states but may have additional requirements for clarity in the deed. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Fee Simple | Absolute ownership of property without conditions. | Determinable fee has conditions that, if unmet, revert ownership. |
| Life Estate | Ownership for the duration of a person's life. | Determinable fee lasts until a condition is met, not tied to a person's life. |
If you are involved in a property transaction that includes a determinable fee, ensure that the conditions are clearly outlined in the deed. Consider using legal templates from US Legal Forms to draft or review your documents. If the situation is complex, consulting with a legal professional may be beneficial.
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The ownership of the property automatically reverts to the original owner or their heirs.