Gerald holds a fee simple determinable interest in a parcel of land in Sussex County, Delaware. The deed states the property was conveyed 'to Gerald and his heirs, so long as the property is used for agricultural purposes.' Gerald decides to convert the property to a commercial storage facility. Under Delaware property law, which of the following best describes the legal consequence of Gerald's change of use?
Correct Answer
A) Gerald's interest terminates automatically and title reverts to the grantor or the grantor's heirs by operation of law
A fee simple determinable is a defeasible fee estate that automatically terminates upon the occurrence of a specified limiting event. The key language identifying this estate type includes words of duration such as 'so long as,' 'while,' or 'during.' When the condition is violated — here, converting the property from agricultural to commercial use — the estate ends automatically by operation of law, and title immediately reverts to the grantor (or the grantor's heirs or successors) through what is called a possibility of reverter. No court action is required to effectuate the reversion; it occurs the moment the limiting condition is breached.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
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