Conditional Estate

In real estate law, a conditional estate, most commonly referred to as a fee simple defeasible estate, is an ownership interest in property that is granted subject to a specific condition. Although the owner holds many of the same rights as a fee simple owner, the estate may be terminated if a stated condition occurs or is violated. This type of estate is typically created with a condition subsequent, meaning the estate is valid when granted but can be defeated upon the happening of the specified event. Conditional estates are often used to restrict the use of property for certain purposes, and failure to comply with the condition may result in the property reverting to the original grantor or another designated party.