What is a fee simple defeasible?

A fee simple defeasible refers to an ownership interest in real property that can be annulled or terminated upon the occurrence of a specific event or condition. Unlike a fee simple absolute, which grants complete and unrestricted ownership, a fee simple defeasible includes stipulations that can lead to the loss of ownership if certain circumstances arise. This means that the grantor specifies conditions under which the title may revert to them or another party if the conditions are not met.

For instance, if a property is transferred with a condition that it must be used for educational purposes, and the new owner uses it for something else, the original owner may have the right to reclaim the property. This type of ownership creates an interest in the land that is subject to qualifying conditions, making it distinctly different from other types of property ownership that do not have such limitations.