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The following article was published in our article directory on January 17, 2013.
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Conditional Fee Estate - Qualified Fee Simple Estate

Article Category: Advice

Author Name: Mark Aucamp

What Is A Conditional Fee Estate?|Qualified Fee Simple Estate

A fee estate that was constricted to a specified beneficiary and a given class of heirs, exclusive of others, and which reverted to the original donor of the assets, or his heirs, in the event of a failure of the requisite issue. "A conditional fee, at common law, was a fee restrained to some particular heir, exclusive of others", 2 Bl Comm 110. The fee was 'conditional' provided that the specified class of heir remained unborn. "At common law estates limited to the heirs of the body of the grantee were referred to as conditional fees, by reason of the condition that, should the grantee die without the particular heirs, the land would revert to the grantor", Yates versus Yates, 104 Neb 678, 178 NW 262, 265 (1920) (Blume v. Pearcy, 204 SC 409, 29 SE.2 d 673, 674 (1944)). A conditional fee estate may be distinguished from a fee simple estate which, if there is not the requisite issue, passes to the general heirs of the donee. The conditional fee is the original of the modern 'estate tail' (or entailed interest as it is now known in English law). In modern English law, the term used for a similar estate is a conditional fee simple.
In the US, the conditional fee estate

or a 'fee conditional', is only understood now in Iowa, Oregon and South Carolina. In most other states a conditional fee estate, if granted, is automatically converted into a fee simple or if an estate is granted subject to such a condition it grants no more than a life estate. 'Conditional fee' is used sometimes synonymously with base fee, i.e. a fee that is defeated on the happening of a contingent event or act. (Note: The American Law Institute's Restatement of Property (St. Paul, MN: 1936), Ch. 4, Introductory Note: Special Note, considers utilize the terms 'base fee', 'conditional fee', 'qualified fee', or 'conditional limitation' undesirable in modern American law, preferring to refer to an estate so created as an estate in fee simple defeasible).

'Conditional fee' may be used also to refer to a fee estate that is granted for a particular reason or until a particular event occurs, although fee simple conditional is more commonly used to refer to such an estate.
conditional fee simple (Eng).

An interest in land that is equivalent to a fee simple, but may be interrupted if a specified event or condition occurs. A fee simple estate that is defeasible on the occurrence of a condition subsequent. For example, a grant of land 'to A as a fee simple on condition that he does not become a Doctor of Philosophy' continues unaffected, unless A becomes a Doctor of Philosophy, at which stage it is brought to an end. A conditional fee simple is intended to be enjoyed in the same way as other fee simple, provided that the condition does not occur; a condition that does not form a limitation on the type of estate that is granted, but may interrupt and have the effect of confiscating the estate from the grantee usually in favor, or at the option, of the grantor (or his heirs). A conditional fee simple is created from use of such words as 'on condition that', 'provided that' or 'but if', as classified from a determinable fee simple, which is created by such words as 'while', 'until', 'during', or 'for as long as' (Mrs. Mary Portington's Case (1613) 10 Co Rep 35b, 41b, 42a, 77 Eng Rep 976). Especially, a conditional fee simple does not instantly terminate upon the taking place of the conditional event, but must be brought to an end by the exercise of a right of re-entry.

Terminologies in bold including conditional fee estate, conditional fee simple and qualified fee are defined and discussed in Real Estate Defined On the internet.

Keywords: {base fee|Blume v Pearcy|conditional fee|conditional fee estate|conditional fee simple|entailed estate|fee estate|fee simple|fee simple conditional|fee simple estate|legal estate|Mary Portington’s Case|qualified fee|qualified fee |Mary Portington Case}

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