In real estate, a Defeasible Fee (sometimes called a qualified fee) is an ownership interest in land that is otherwise similar to a fee simple absolute but is subject to a specific condition or event. The owner has full possessory rights to the property, but those rights may be terminated or defeated if a stated condition is violated or a specified event occurs. These conditions are typically written into the deed that conveys the property.
If the condition is triggered, ownership may automatically revert to the grantor or may give the grantor the right to reclaim the property, depending on the type of defeasible fee created. Common examples include property conveyed “so long as” it is used for a particular purpose, such as a school or church. Defeasible fees are used to control land use over time while still allowing the grantee broad ownership rights unless and until the specified condition occurs.
