In a fee simple determinable, what happens when a condition is breached?

In a fee simple determinable, the ownership of the property is subject to a specific condition, and if that condition is violated or breached, the property automatically reverts back to the original owner or their heirs. This automatic reversion occurs without the need for any legal action; it is as though the ownership is tied to the specified condition. The condition creates a type of ownership that is limited and can terminate when the condition is not met. This means that the original owner retains a future interest in the property, known as a "possibility of reverter," which allows them to reclaim ownership if the condition is breached.

Other options do not accurately reflect the nature of a fee simple determinable. The property does not remain with the new owner because the ownership effectively ends with the breach of the condition. Similarly, the property is not transferred to another buyer nor sold at market value; rather, it reverts automatically to the original owner as a consequence of the violation of the terms set forth in the deed or agreement.