The possibility of a reverter refers to the right of the grantor to possess property in the future if a certain condition is or is not met.
The original grantor of a fee simple determinable holds the possibility of a reverter, which is a reversionary interest. The possibility of a reverter may stay with the land, and the inheritors of the land would also be subject to the reversionary interest. A fee simple determinable is a type of estate with a stated condition. If the stated condition or an event occurs, then the right to the estate automatically transfers back to the original grantor. The original grantor, therefore, holds a future interest in the land. However, since the reversion depends on the stated condition or an event, the original grantor may or may not regain the right to the real property in the future. The stated condition is called the condition subsequent. The fee simple determinable allows the original grantor to ensure that the property is used in a certain way.
See also: possessory estate.
Fee Simple Determinable
A fee simple determinable is one of the three types of fee simple (defeasible fees). The other two categories of fee simple are the fee simple subject to condition subsequent and the fee simple subject to an executory interest. The fee simple determinable (the possibility of a reverter) differs from the fee simple subject to condition subsequent and the right of entry. The right of entry also has a stated condition. However, for a fee simple subject to condition subsequent, the reversion to the original grantor is not automatic; the original grantor, upon knowing that the owner violated the condition subsequent, can choose to take back the land or not. The property will stay with the current estate possessor if there is an inaction of the grantor. Finally, the fee simple determinable differs from the fee simple subject to an executory interest. In a fee simple subject to an executory interest, when the grantee violates the stated condition, the reversion of interest is automatic. However, the interest in land does not go to the original grantor but to a third party for whom the grant indicates.
For instance: “To A, as long as the property is used for religious purposes.” The words indicate a fee simple determinable. There is the stated condition, “so long as…”
If A does not abide by the stated condition and uses the property for commercial purposes, then the land reverts to the original grantor automatically. The land, also known as Blackacre, always maintains the possibility of a reverter when belonging to A.
[Last updated in January of 2024 by the Wex Definitions Team]