Paralegal Certification PrepTorts and Property LawHard
A client inherited a piece of land from their grandfather. The property deed states that the land is 'to my grandson, so long as the property is used for agricultural purposes.' If the grandson decides to build a commercial shopping center on the land, what is the most likely outcome regarding the ownership of the property?
- AThe grandfather's heirs must file a lawsuit to reclaim the property.
- BThe grandson must pay a penalty, but retains ownership.
- CThe grandson retains full ownership; the condition is unenforceable.
- DThe property automatically reverts to the grandfather's heirs or remaining estate.
Show answer & explanationAnswer & explanation
Correct answer: D. The property automatically reverts to the grandfather's heirs or remaining estate.
The language 'so long as' creates a fee simple determinable, which is an estate that automatically terminates and reverts to the grantor (or their heirs in this case) upon the occurrence of a specified event. Building a shopping center violates the 'agricultural purposes' condition, triggering the automatic reversion.
Why the other options are wrong
- A. This describes a fee simple subject to condition subsequent, where the grantor has a right of entry but must take action.
- B. A penalty is not the typical outcome for a fee simple determinable; rather, it's a loss of the estate.
- C. Conditions in deeds can be enforceable, especially when creating specific defeasible estates.
Fee Simple Determinable
An estate in land that automatically terminates and reverts to the grantor upon the occurrence of a specified event. It is characterized by 'so long as,' 'while,' 'during,' or 'until' language.
- Automatically terminates upon condition breach.
- Grantor retains a possibility of reverter.
- Words like 'so long as' indicate this estate.
Memory trick: Determinable Deeds Determine Reversion.