What is a typical characteristic of a defeasible fee estate?

A defeasible fee estate is characterized by its nature of being conditional; it can be terminated upon the occurrence of certain events or conditions. This means that the ownership of the property can revert back to the grantor or to another designated party if specific contingencies are not met.

For example, if a property is transferred under the condition that it is used for educational purposes, and it is not, the estate could terminate, and the property may revert to the original owner or their heirs. This conditional aspect is what distinguishes a defeasible fee estate from other property interests, which might not have such limitations on their continuation.

In contrast, other choices do not accurately convey the defining aspect of a defeasible fee estate. Unlimited duration refers to a fee simple absolute, which has no conditions attached to its ownership. A basis on personal discretion does not apply to defeasible fees, as they are primarily concerned with specific conditions rather than subjective preferences. Additionally, stating that they are only valid for commercial properties is misleading, as defeasible fees can be applied to residential properties as well. Thus, the distinctive feature of a defeasible fee estate is its potential for termination based on specified events or conditions.