Also known as:resolutory conditions · resolutive condition · condition subsequent
Written by attorneys · grounded in primary & secondary sources — see below
An event the occurrence of which empowers the grantor or a successor to terminate a defeasible fee simple estate that otherwise continues until the power is exercised.
Sources & Authorities
How it applies
Common Examples
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Deed Creates Defeasible Estate
Raphael Rivera conveyed a downtown parcel to the City of B for public use. The deed granted the land to the mayor and heirs of his body on condition that the land be continuously used as a public park, and if not, it shall revert to the donor's estate. When the city continued park operations after the mayor's death, the condition remained unsatisfied and no termination occurred.
Permit Condition Triggers Dispute
Rhea Reynolds sought a building permit from a water management district. The district demanded she fund offsite improvements before approving the permit. Reynolds refused the demand and sued, claiming the required expenditure functioned as a resolutory condition that improperly terminated her development rights.
Select any source to read its text and confirm it supports the definition.
Restatements
Dictionaries
Koontz v. St. John’s River Water Management District570 U.S. 595 (2013)
Insurance Policy Limitation
Rosalind Reed purchased a marine insurance policy covering a vessel. The policy contained a clause stating coverage would end if the vessel sailed to a prohibited port. When the vessel entered the forbidden area, the insurer invoked the clause to terminate all obligations under the policy.
Home Insurance Co. v. Dick281 U.S. 397, 407, 408
Charitable Bequest Restriction
Rajesh Rao left funds in his will to a hospital for construction of a new wing, with the gift to revert to his estate if construction was not completed within five years. The hospital failed to build within the period, and Rao's executor asserted that the resolutory condition had terminated the hospital's interest.
Home for Incurables of Baltimore City v. University of Maryland Medical System Corp.797 A.2d 746 (Md. 2002)
Criminal Statute Change
Rina Rahman was convicted under a state law that later changed the required mental state for the offense. The new statute operated as a resolutory condition that ended liability under the prior formulation, prompting her to seek relief from the original judgment.
Rogers v. Tennessee532 U.S. 451, 121 S.Ct. 1693, 149 L.Ed.2d 697 (2001)
Trust Interest Termination
Roland Rhodes created a trust for the benefit of his children. The trust instrument provided that each child's interest would end upon the child's death without surviving issue. When one child died without descendants, the trustee distributed the share according to the resolutory condition in the trust terms.
Farkas v. Williams125 N.E.2d 600 (Ill. 1955)
Common questions
Frequently Asked
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How does a resolutory condition differ from a condition precedent in property conveyances?+
A resolutory condition terminates an estate that has already vested upon the occurrence of a stated event. A condition precedent prevents an estate from vesting until the event occurs. The Restatement distinguishes the two by whether the interest exists subject to divestment or has not yet arisen.
Does the occurrence of a resolutory condition automatically end the estate?+
No. The estate continues until the grantor or successor exercises the power of termination. The condition merely creates the power. Affirmative action is required to effect termination.
Can a power of termination arising from a resolutory condition be transferred inter vivos?+
No. A reserved power of termination is personal to the grantor and cannot be conveyed during life. It may be retained, released, or devised, but an attempted inter vivos assignment is ineffective.
518 U.S. 37, 116 S. Ct. 2013, 135 L. Ed. 2d 361 (1996)Criminal Law
…brought forward by Montana's lawyers. We do not know why the constitutionality of Montana's enactment should be subject to the condition subsequent that its lawyers be able to guess a policy justification that satisfies this Court. Whatever they guess will of course not necessarily be the real reason the Montana Legislature adopted…