What characterizes a fee simple defeasible?

A fee simple defeasible is characterized by the potential to be terminated upon the occurrence of a specified condition or event. This ownership interest is unique because, although it is one of the most complete forms of property ownership, it is not absolute. The defining feature is this condition, which creates a possibility of reversion to the previous owner or another designated party if the condition is violated or not fulfilled. For example, if a property is conveyed with the stipulation that it is to be used for educational purposes only, and that use changes, the grantor or their heirs might reclaim ownership.

The concept of a fee simple defeasible contrasts with a fee simple absolute, which offers complete ownership without any conditions. While it grants many of the same rights as a fee simple absolute, the pivotal distinction lies in its conditional nature, which introduces the risk of losing ownership based on future actions or inactions.

Thus, the defining characteristic that sets fee simple defeasible apart is its condition-based termination, making it the correct answer.