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Real Property • Present Possessory Estates
PROP#007
Legal Definition
If a fee simple terminates upon the happening of a stated event and passes to a third party rather than the grantor, the third party has an executory interest.
Plain English Explanation
A fee simple subject to executory interest is simply a fee simple determinable, except instead of there being an automatic reverter back to the grantor, the rights transfer to a third party. In other words, a fee simple determinable says, "Hey, I'm giving you this land for a potentially infinite duration, however, if you ever do the thing I say don't do, then the land automatically comes back to me." In comparison, a fee simple subject to executory interest says the same thing, except the land automatically goes to Amy (or some other third party).
Note that executory interests require you to do a Rule Against Perpetuities analysis, which is an unfortunately complicated rule that we will discuss in a later card. Sorry in advance.
Note that executory interests require you to do a Rule Against Perpetuities analysis, which is an unfortunately complicated rule that we will discuss in a later card. Sorry in advance.
Hypothetical
Hypo 1: Oz conveys Blackacre "to Amy for so long as no one consumes marijuana on the premises, then and in that event to Bob." Result: Oz has conveyed to Amy a fee simple subject to executory interest. Bob has the executory interest. If at any point marijuana is consumed on Blackacre, Amy's rights automatically terminate and Bob gains fee simple in Blackacre.
Visual Aids
Related Concepts
How is a fee simple determinable created?
How is a fee simple subject to condition subsequent created?
In assessing a present possessory estate, what is affirmative waste?
In assessing a present possessory estate, what is ameliorative waste?
In assessing a present possessory estate, what is permissive waste?
What are the 3 types of waste a life estate holder may commit?
What are the present possessory estates?
What happens when a life estate holder renounces his interest?
What is a defeasible fee?
What is a fee simple absolute?
What is a fee tail, how is it created, and what is the result of its creation in most jurisdictions today?
What is a life estate?
What is a life estate pur autre vie and how is it created?
What rights and duties do the holder of a life estate have?
What will a court do if it is not clear whether someone intended to create a fee simple determinable or subject to condition subsequent?
