How is the Fee Simple Determinable Interest defined?

Fee Simple Determinable Interest is characterized by a condition that, if violated, leads to the automatic reversion of the property back to the grantor. This type of interest grants ownership that lasts as long as a particular condition is met. If that condition is broken, the grantor retains a "Possibility of Reverter," allowing them to regain ownership without the need for any legal action. Therefore, the distinguishing feature of a Fee Simple Determinable is indeed the presence of this possibility of automatic reversion.

In contrast to this, other types of interests may involve more complex processes for reversion or different stipulations regarding transferability. For instance, the notion that it cannot be transferred by will or deed is incorrect, as most real property interests can be transferred under specific conditions. Understanding the nature of Fee Simple Determinable Interests, particularly their automatic reversion and the implications this has for ownership, allows title insurance producers to better assess title risks and inform clients about property rights.