What does the term 'fee simple defeasible' refer to?

The term 'fee simple defeasible' refers specifically to an estate in land that can be voided or terminated upon the occurrence of certain specified conditions. This type of ownership is characterized by the stipulation that if a particular event occurs or a particular condition is met, the ownership will automatically revert to the original grantor or a designated party.

This concept is essential in real estate and property law because it helps clarify the conditions under which ownership can change. For instance, a property might be granted in fee simple defeasible with the provision that it must be used for educational purposes; if the property is no longer used for that purpose, the grantor or their heirs have the right to reclaim the property.

Understanding this term is crucial for anyone working in title insurance or real estate, as it affects the stability and security of property ownership. The other choices describe different property concepts: a perpetual estate is not conditioned, while a fixed-term lease pertains to rental agreements, and an ownership structure holding property for another suggests a fiduciary responsibility, rather than the conditional ownership implied by a fee simple defeasible.