What is a fee estate that may automatically terminate upon the occurrence of a stated event?

Prepare for the Ohio Land Title Association exam. Enhance your understanding of real estate transactions, title search, and property law. Study with interactive quizzes and detailed explanations to excel in your test.

A fee estate that may automatically terminate upon the occurrence of a stated event is known as a Fee Simple Determinable. This type of estate is granted with a condition that creates a limitation on the property, and if that condition is violated or the stated event occurs, the property automatically reverts back to the grantor or the grantor's heirs.

The defining characteristic of a fee simple determinable is its use of specific language, often employing phrases like "so long as," "while," or "until," which clearly indicate the condition under which the estate will end. For example, if a property is granted "to A so long as the property is used for educational purposes," the ownership automatically reverts to the grantor if the property ceases to be used for that purpose.

In contrast, a Fee Simple on Condition Subsequent also includes a condition but does not automatically terminate; instead, the grantor has the right to reclaim the property through a legal action or by entering the property again after the condition is breached. Fee Tail Estates and Qualified Fees involve different conditions and limitations on ownership, with neither having the automatic reversion characteristic that defines a Fee Simple Determinable. Understanding these distinctions is crucial for anyone involved in real estate and land title

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