Written by attorneys · grounded in primary & secondary sources — see below
An event or condition specified in a grant that causes automatic loss of a possessory estate upon its occurrence. The estate terminates by its own terms when the stipulated event happens, shifting ownership to another party without further action by the conveyor.
Sources & Authorities· 21 primary sources
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Cases
Federal Rules
How it applies
Common Examples
6
Judgment Ends Estate Claim
Dwight Dorsey conveyed land to Diane Dawson until the property ceased use as a farm. After Dawson built a commercial warehouse, the use restriction was breached. The breach triggered the defeasance clause, terminating Dawson's estate and restoring full ownership to Dorsey.
Certain Event Triggers Reversion
Devon Drake granted acreage to Danielle Dixon so long as the land remained undeveloped. When the city approved a shopping center on the parcel, the specified event occurred. Dixon's estate ended automatically and title reverted to Drake without any further conveyance.
Destiny Davis and Darius Dixon each claimed fee simple title under competing deeds containing defeasance clauses. One deed specified termination if the land was ever used commercially. The court applied the defeasance provisions and quieted title according to which estate had ended.
Vested Right Survives Rezoning
Decker Electronics obtained a permit to build on land held in fee simple subject to defeasance if construction did not begin within two years. After substantial expenditures, the city rezoned the parcel. The defeasance clause was not triggered because the vested-rights doctrine protected the existing estate.
Executory Limitation Shifts Title
Davenport Pharmaceuticals conveyed property to Drake Logistics in fee simple subject to an executory limitation that title would pass to Dominion Capital if the land ever housed chemical storage. When storage tanks were installed, the limitation operated and title automatically transferred to Dominion Capital.
Citizenship Change Does Not Defeat Estate
Danielle Dixon held land under a defeasible fee that would terminate if she moved out of state. She changed domicile after filing a quiet-title action. The court held that the post-filing change did not trigger the defeasance clause, preserving her estate.
Common questions
Frequently Asked
3
How does a fee simple subject to defeasance differ from a fee simple absolute?+
A fee simple subject to defeasance ends automatically or upon condition when a specified event occurs, whereas a fee simple absolute continues indefinitely without any terminating event or condition stated in the grant.
What language in a deed creates a defeasible estate rather than a fee simple absolute?+
Words such as until, while, during, as long as, or provided that signal a limitation that makes the estate defeasible upon the stated event.
Does the occurrence of the defeasance event require court action to terminate the estate?+
No. When the stipulated event occurs, the estate ends by its own terms and title shifts automatically to the designated party.
304 U.S. 64, 78–80 (1938)Conflict of Laws
…the distinction between questions of general and of local law. [^maj-9]: It was even possible for a non-resident plaintiff defeated on a point of law in the highest court of a State nevertheless to win out by taking a nonsuit and renewing the controversy in the federal court. Compare Gardner v. Michigan Cent. R. Co. ,…