MBE Rules · Real Property
Defeasible fees
The rule
Fee simple determinable: ends AUTOMATICALLY on stated event ("so long as", "until") — followed by possibility of reverter. Fee simple subject to condition subsequent: grantor must EXERCISE right of entry ("provided that", "but if", "on condition") — followed by right of re-entry. FS subject to executory limitation: vests in 3rd party automatically.
In plain English
Defeasible fees are types of property ownership that can end if certain conditions are met. Some end automatically when a condition occurs, while others require action to end.
Worked example
A owns land 'so long as' it's used as a park. If A builds a house instead, ownership ends automatically. If B owns land 'provided that' it's used as a school, B must act to reclaim it if it's not.
Memory hook
Defeasible = Definite or Delay? Determinable ends automatically; condition subsequent requires action.
The trap
Students think: all defeasible fees end automatically. Wrong, because only fee simple determinable does. The actual test is whether the grantor must act (condition subsequent) or if it ends on its own (determinable).
How examiners test it
The MBE loves: conveyance with 'so long as' or 'but if' language. Trap: students misidentify fee type. Look for whether action is needed or not to determine fee simple type.
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