Condition Subsequent Law and Legal Definition A condition subsequent is a condition that if performed or existing will excuse performance by another. A condition subsequent may be either an event or a state of affairs that must either (1) occur or (2) fail to continue to occur. The real estate industry never adopted the change. A conveyance in fee, reserving a life estate in a part of the land, and made upon condition that the grantee shall pay certain sums of money at divers times to several persons, passes the fee upon condition subsequent. But, it is really rather straightforward and the documentation depends upon how the escape clause was written in the first place. There is always a great deal of confusion and discussion concerning conditions and escape clauses contained in agreements relating to real estate. The Court preferred the use of conditions subsequent. 6) In the case of condition precedent, transfer will be void if the condition precedent is impossible to performance, or immoral or opposed to public policy. However, these gifts are revoked if a specific event happens. An example of this would be if a testator leaves land to a specific beneficiary, on the condition ⦠See condition subsequent. ... that if a man makes a gift in tail, on condition, that he shall not suffer a common recovery, that this condition is repugnant to the estate ⦠Established by conditional language, these estates are followed by a right of entry. Upon the happening of the event or condition stated by the grantor, the transfer may be void or at least subject to annulment. Fee simple subject to condition subsequent: "A to B, but if [condition] A may reenter" Breaking the condition gives the grantor the option of reclaiming the res--right of reentry. Bank of Portland v. Snodgrass, 202 Or. Within about 10 years the Law Society adopted conditions subsequent as the preferred way of doing business (except when a true condition precedent was required). In the struggle to interpret grants of conditional estates, and to allocate rights between the grantor and the grantee, courts came to divide conditional grants into two categories : the "determinable estate" and the "estate subject to condition subsequent", also called the "defeasible estate". If Barney uses the land to grow corn, the life estate will end when he dies. The bundle of rights. One to whom an estate on condition subsequent is given has an estate in the land which is liable to termination on breach of the condition, but until such termination he has the same rights and powers in connection with the estate as if the condition did not exist, and it may be transferred by him or by operation of law, subject to be terminated, however, in the hands of the transferee.66 Explaining Condition Subsequent term for dummies . Leaving Gifts In Wills And Trusts With Conditions Attached. If You Want to Impose Conditions on a Gift. In setting up a trust or writing a will, a settlor or testator has the choice of deciding which people are named as beneficiaries.In some cases, the testator may decide to name beneficiaries to receive payments from a trust or assets under a will only if the beneficiaries meet certain conditions. may repossess the property within a limited time frame if restrictions are violated. Skip to content. Condition precedents are frequently used in estate planning, such as in wills. (An estate not subject to such conditions is called an indefeasible estate.) Conditions can be either precedent or subsequent. Unlike a determinable estate the grantor of a condition subsequent estate. Conditions Precedent and Conditions Subseqent By Brian Madigan LL.B. In this case, Barney has a life estate subject to a condition subsequent. A condition precedent must happen or be performed before a right or estate is gained; a condition subsequent causes a right to be lost or an estate to be terminated upon its occurrence. Unlike a determinable estate, the estate doesnât automatically end when the condition occurs. In the case of condition subsequent, the estate immediately vests in the grantee and remains in him till the condition is broken. fee simple subject to condition subsequent (plural fee simples subject to condition subsequent) ( law ) A defeasible fee created with language reserving the right of the grantor to reclaim ownership of the land upon the occurrence of a specified condition (e.g. IN PRAISE OF CONDITIONS SUBSEQUENT INTRODUCTION A party to a prospective contract, particularly an important contract such as the sale and purchase of land, is often in a dilemma. What does fee simple subject to condition subsequent mean? ... and confirmed deals with a provision for escape are evidenced by the condition subsequent clause. ... Read why Real Estate Agent rates 5 Stars in over 20 Agents Reviews. If the triggering event occurs, the holder must take steps to establish possession of the land. Anderson, W.S.. 1998. A condition subsequent is often used in a legal context as a marker bringing an end to one's legal rights or duties. Ownership of which of the following is used to define an interest in real estate. On condition subsequent: Similarly, an estate on condition subsequent is an estate that the grantor may terminate if the specified condition occurs. I think in your example, Tim has a fee simple subject to executory limitation because on the happening of the event (not death, which would make it a life estate) the property transfers to a third party, not the grantor. A condition precedent is something that must occur before an obligation exists. ... Approved by the Law Society and the Real Estate Institute of Western Australia' (1977) 13 U W A L Rev. The Oregon Supreme Court upheld the bequest, ruling that the conditions might seem âexacting, unkind and unnecessary, but we cannot say they were unlawful.â (U.S. Natâl. If he uses the land for any other purpose, the life estate will end if Fred decides to re-enter the land and take it back. is limited in the kind of restrictions that can be placed on the grantee. A condition subsequent is an event that occurs after the devise is made, and affects or invalidates the devise. Condition Precedent: A legal term describing a condition or event that must come to pass before a specific contract is considered in effect or any obligations are expected of either party. Add real estate terms app on your Website. 6 Greenl. A condition subsequent (CS) is an exit clause from an existing contract. A fee simple defeasible is a fee simple that deals with the conveyance of a property with conditions. Ballentine's law dictionary. Explaining Condition Subsequent term for dummies estate on condition subsequent If you want to leave conditional bequests, take a lesson from these cases. A conveyance in fee, reserving a life estate in a part of the land, and made upon condition that the grantee shall pay certain sums of money at divers times to several persons, passes the fee upon condition subsequent. automatically retakes ownership if restrictions are violated. Definition of fee simple subject to condition subsequent in the Definitions.net dictionary. Condition Subsequent: A condition subsequent applies to gifts which are given without condition. A common example of such a condition is a loan contingency found in a purchase and sale agreement, whereby if the buyer is unable to obtain a loan, the buyer is not obligated to complete the purchase of the property. condition subsequent estate with a condition required after the transaction Fee simple defeasible is another way of saying fee simple qualified. The fee simple subject to condition subsequent is very similar to the fee simple determinable. Gain more insights from LegalMatch's online law library today. So, a will might leave a piece of land to a person, provided that they never sell alcohol on the land. Unlike a determinable estate, the grantor of a condition subsequent estate has no control over how the property is used. Fee Simple Subject to Condition Subsequent: The estate is similar to a fee simple, but has a condition attached. Meaning of fee simple subject to condition subsequent. Must repossess the property within a limited time frame if restrictions are violated. Ballentine's law dictionary. Get the definition of Condition Subsequent and understand what Condition Subsequent means in Insurance. estate on condition subsequent. The major difference is that while a fee simple determinable automatically ends if the grantee (the person who received the land) does not fulfill the condition, the granteeâs interest in a fee simple subject to condition subsequent does not automatically end if the event or condition occurs. A condition subsequent may be distinguished from a conditional limitation that it resembles by virtue of the fact that the interest does not automatically end. A defeasible estate is created when a grantor transfers land conditionally. A party won't want to finish the contract if the property has issues. A condition subsequent is an event or state of affairs that brings an end to something else. 196. A subsequent condition is one which enlarges or defeats an estate or right already created. For example, a lease may contain covenants to repair, pay taxes and assessments or pay rent. A subsequent condition is one which enlarges or defeats an estate or right, already created. "if X event occurs, grantor reserves the right to reenter and retake"); upon occurrence of the condition, the grantor may decide ⦠Types of fee simple defeasible include fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation. The term is used in contract law to excuse a party from performing upon the nonoccurrence or existence of the condition. A well-planned will should include some other person for the land to go to if the condition occurs. Information and translations of fee simple subject to condition subsequent in the most comprehensive dictionary definitions resource on the web. See condition subsequent. Read Reviews. 530 (1954).) ... 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