fee simple subject to an executory limitation

A fee simple subject to an executory limitation is a possessory estate in land. It is a type of fee simple ownership similar to a fee simple absolute, but subject to a condition specified by the grantor at the time of conveyance. These are known as defeasible fees. For a fee simple subject to an executory limitation, if the condition is met, the property immediately and automatically passes to a third party specified by the grantor at the time of conveyance. While the condition is unmet, the third party’s future interest in the property is called an executory interest.

Unlike the other two types of defeasible fee, executory interests can be created by use of either durational or conditional language. Any grant that conveys a fee simple estate subject to a condition that will transfer ownership to a third party creates a fee simple subject to an executory limitation.

For example, “O grants Blackacre to C provided that it is used as a museum, otherwise to D,” and “O grants Blackacre to C as long as it is used as a museum, then to D.” With either language, O has granted C a fee simple subject to an executory limitation and D the corresponding executory interest. Should C stop using Blackacre as a museum, D will automatically gain ownership of the property.

When seeking to create a fee simple subject to an executory limitation, a grantor must be careful not to violate their jurisdiction’s rule against perpetuities.

[Last reviewed in June of 2025 by the Wex Definitions Team]

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